Feels like a hack

Aug 23, 2019
11:08:38pm

NacoCoug All-American

Feels like a hack

So you are selling shares that you dont own? Why wouldn't the brokerage just sell them? And how does the brokerage owning shares facilitate trading?

Report problem with this ad

NacoCoug

Bio page: NacoCoug
Joined: Jan 23, 2010
Last login: Apr 18, 2024
Total posts: 10,293 (642 FO)

Report problem with this ad

Messages

Author

Time

Hey finance guys. Question about shorting a stock

NacoCoug

8/23/19 10:59pm

Instead of initiating with a buy, you initiate with a sell. Then you have to

RyneK

8/23/19 11:02pm

Feels like a hack

NacoCoug

8/23/19 11:08pm

The securities lending market is a separate market

Coog4Life

8/23/19 11:11pm

<< Deleted >>

RyneK

8/23/19 11:13pm

So does the borrower ever pay the price for the stock or just the interest on

NacoCoug

8/23/19 11:17pm

Wait, what I said doesnt make sense. Is it that they give the cash for the stock

NacoCoug

8/23/19 11:21pm

correct

Coog4Life

8/23/19 11:25pm

So shorting has come from institutions needing cash?

NacoCoug

8/23/19 11:36pm

no, these are distinct markets

Coog4Life

8/23/19 11:50pm

You mean not all that borrow are shorting?

NacoCoug

8/23/19 11:53pm

correct

Coog4Life

8/23/19 11:53pm

It’s the brokerage firm that the client is trading with not another client

Jersey hunter

8/23/19 11:11pm

Uh...no

KSwiss

8/24/19 1:26am

You borrow the shares from your broker's inventory, quick as buying long. It has

MatthiasG

8/24/19 12:00am

Easy way to understand it, you're buying low, selling high, just doing it in

MatthiasG

8/24/19 12:07am

Dumb it down more. Use a stock for the example. Like FB.

timponyloco

8/24/19 3:43am

There’s plenty of that already, knock yerself out

Posting on CougarBoard