GREY:XEBEQ - Post by User
Post by
Ciaoon Apr 17, 2022 4:23pm
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Post# 34608697
Beneficiary of lending shares in a short sale
Beneficiary of lending shares in a short saleWith 10M shares short, say at an average price of $3 or so, and a interest loan rate of 15%, that comes out to $4.5M dollars a year or $2.23M in half a year on interest fees. We're not benefiting from someone taking shares in our margin accounts and loaning them out*. There's also the commissions from constant selling and buying back of shares as we have seen. Over 88% of the short volume is covered within a 2 week period.
How much does an analyst make a year? Who do those low share price targets benefit? It would be great if the short never covered for those collecting fees.
*One can always put in a high priced sell order to prevent your shares from being loaned out.
https://www.investopedia.com/ask/answers/05/shortsalebenefit.asp