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re: How do you "borrow" someone's stock share and sell it?
Posted on 1/28/21 at 4:20 pm to V2_Jigsaw
Posted on 1/28/21 at 4:20 pm to V2_Jigsaw
quote:So tell me, if I have a stock valued at $20, and I let someone borrow it, but when I get it back it's worth $8 because all the short sellers pushed it down, how is that beneficial to me?
They have a “contract” where they borrow stocks (say at $20 and sell them, but then they have to return the same number of stocks back to the person or institution they borrowed them from. So that’s when they buy the stocks back at a lower price and pocket the difference.
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