Re:u/DeepFuckingValue and the GameStop Reddit mania
by zaphirplane on Saturday January 30, 2021 @07:05AM
(#25968417)
How is that, it means (within the statement made)the stock is lent multiple times if a stock can be lent multiple times then that’s no different from a naked no borrowing short b) if it lent to multiple people it’s owned by none
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Re:u/DeepFuckingValue and the GameStop Reddit mania
by ivalm on Saturday January 30, 2021 @01:29PM
(#25971518)
No. Naked short would be when I sell without borrowing hoping that the stock will drop sufficiently (or new shares will be available for borrowing) that by the time settlement occurs (T+2) I will be able to cover. The “fraud” of naked short is that you fail to deliver the shares at settlement to the new owner. If you re-borrow shares then that’s different since then you really do have shares to deliver.
Re:u/DeepFuckingValue and the GameStop Reddit mania
by zaphirplane on Monday February 01, 2021 @02:36AM
(#25986463)
If a stock is lent multiple times then at least one of the borrowers can’t deliver and hence are naked