Fidelity: Bro, can we borrow some of your shares? Since when are they even asking??
(media.greatawakening.win)
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Yep, lend your shares so we can short the hell out of the stock you own to decrease it's value, but we'll give you a dime.
Not happening!
Forgive my ignorance, but if someone borrows my share and sells it, then I sell my share, as they say I can do, then hasn't my share been duplicated, increasing the total supply of shares on the market?
That seems like bad accounting, and also very similar to fractional reserve banking.
I'm not sure how that works. I would hope the short had to cover, but I doubt that is the case.
Interesting. They are asking for a loan… from shareholders… but they are gonna set the loan terms…
There’s so many naked shares out there already. So by them asking to do it legitimately maybe that marks a sea change in the way the market isn’t being manipulated anymore. Moon 🔜
Bottom line..the house always wins
Robinhood sends me the offer at least once a week.
They should work on not turning off the buy button for retail investors.
But it’s for your own protection. 🙄
When they short a stock you own while using your shares, sometimes it's not being shorted because it's overpriced. It's a way to destroy a company they oppose. In the event of great news for the shorted company, the price can Gap up in price which puts shortie in a position when he has to actually buy the stock to cover his contract. That can cause even bigger price increases as the new Cadre of buyers jump in. That can cause a "short squeeze" where the price goes up more. Shortie now has to buy a stock that has gone up double, triple, or more. Shortie doesn't have the funds to cover. He also signed a contract offering your shares to someone else. You decide to sell at the spike in price. The broker doesn't have the funds to get your shares back. Broker goes bankrupt. You are now broke.
If it was only that simple.
You failed to mention so, so many factors that I'm not sure where to start.
Shorting a stock requires margin. The margin required is 100% of the shorted stock in addition to, at the very least, 25% above that amount called "margin requirement". Many brokerage firms require even more than that which regulation requires. At any point if your margin requirement is not met in the period a stock is being shorted you fall into what's called a 'margin call'. The firm gives the person shorting the stock a few hours to cover that margin call therefore bringing that investor back in line with the 125% requirement by force. If the investor shorting the stock does not meet that requirement, the firm liquidates the investors positions, whether it be the shorted stock or any other stock in his/her portfolio, in order to bring it back in line.
The above mentioned is a core and regulated feature of a margin account that allows the shorting of stocks.
That being said lets also not forget what the main motivation of a person shorting the stock is.
It is NOT to eventually own a declining position. In fact he/she is likely not even interesting in owning a stock at all. A person shorting a stock is motivated only in making money on the delta between the current market price and the price at which the short position was taken. That's it.
To that end. A short position is rarely if ever trading hands. The delta is the only thing moving between the investors. The person caught on the losing end gets out from under the position and the difference in dollars is then transferred to the investor on the winning side. The person that originally owned the stocks being shorted has always and continues to own the shares.
Keep in mind the person taking the short end of the contract NEVER had faith in the stock he or she shorted. By definition. Therefore never wanted the stock. The investor is attempting to capitalize on what he/she perceived as a miscalculation by owner of the stock that is being shorted. The owner of the stock being shorted is motivated by the inverse.
The firm on the other hand is motivated by making money on the facilitation of that transaction. The firm charges 'margin interest'. If the firm, in its calculation, is taking on too much risk in the facilitation of that transaction the firm simply liquidates the transaction and forces the loser to make good on that transaction. And since the margin requirement, at all times, was at or above the 125% requirement, all parties in the transaction are covered. Including the firm.
None of what I mentioned above should be taken as advice.
You will own nothing and be happy
Depository Trust Company (DTC)?
What makes you think you own anything now ?
"...(DTC) is registered with the Securities and Exchange Commission (SEC), is a member of the U.S. Federal Reserve System,"
https://www.investopedia.com/terms/d/dtc.asp
I'd like to see them try to get their assets when I move to El Salvador
Took a position in CFVI (Rumble) and lend out my shares; typically all share are out every month. The deposit from lending is deposited the sixth of every month. What do I do with those proceeds? Why of course, purchase more RUM. Thanks shorties. Nothing will hold RUM down, nibbling at AWS will reward longs.
14 million shares short (the entire tradeable float with insiders /institutions holding the remaining 70%)....the stock is just going to squeeze higher week after week, month after month as 14 million shares will need to cover.....not to mention that the borrow interest rate to hold short is 40-50% (annualized)
MOASS is when?
💎🙌
Starting on May 28, stock trades will settle in 1 day. It is currently 2 days. 🤔 It has been shortened previously due to improved technology.
Nice name.
That just means they pay you,and borrow long term.
Does it specify which shares they want to borrow, and if so, is it DJT?
I have a feeling they want DJT and GME
DJT to short, and GME to cover their shorts
From a similar brokerage, the stocks they want are:
DJT lending rates right now are around 60%. A couple years ago they were over 100%, but the shorties did drive the price down to $10 for a while.
EDIT: Important note. I don't know about this particular program but in the one I have in mind you have no control of which stocks they borrow. They can just borrow any stock you have when they feel like it.
So if a guy agrees to loan out 1000 shares of DJT what kind of reward comes with that?
You become Judus and get some gold coins.
Assuming the current DJT price holds or goes higher, and the rate is 60% averaged for the month, it could be up to 2k per month or more. Then of course you have to pay pedojoe's cut too (fed tax).
But the monthly income depends both on the rate and the price of the stock, so if the price goes down (which is the entire point of short selling), then the income will be reduced, and eventually the rate will go down too.
Although the rate is more of an indicator of how hard it is to borrow the stock than the stock's actual price.
Let that sink in.
Question: then who has allodial title?