Re:It Feels Like the Game Is Rigged
by bb88 on Monday February 01, 2021 @01:09AM
(#25986073)
The number of shares reported is the number of shares existence -- not because of naked shorting or not.
Naked shorting would not increase the number of share available to be bought. But not the total number of shares in existence.
This is the same way banks use deposits to make loans. The dollar is the same dollar, but can be spent multiple times. Hence the money multiplier effect. The number of dollars in circulation is a constant. The number of times a dollar can be spent can be more than one.
At some point the loan still has to be paid off, which requires me, eg, to acquire a dollar somehow, then pay it back to the bank -- with interest.
Naked shorting would not increase the number of share available to be bought. But not the total number of shares in existence.
This is the same way banks use deposits to make loans. The dollar is the same dollar, but can be spent multiple times. Hence the money multiplier effect. The number of dollars in circulation is a constant. The number of times a dollar can be spent can be more than one.
At some point the loan still has to be paid off, which requires me, eg, to acquire a dollar somehow, then pay it back to the bank -- with interest.