Re:Counterfeiting Stock – Explaining illegal naked shorting ...
by jameshart on Monday February 01, 2021 @08:05AM
(#25988277)
In the simple short scenario, where A owns a share, lends it to B, then B sells it to C, the share in question only has one owner: C. A doesn’t have a share any more, they have an IOU from B for one share. B doesn’t have a share either. Only C has a share.
Once the IOU comes due, B will need to acquire a share from D to give back to A, at which point both A and C own a share - but D no longer does.
At no point are there any magic duplicated shareholding rights.
Re:Counterfeiting Stock – Explaining illegal naked shorting ...
by JanSt on Monday February 01, 2021 @02:01PM
(#25992149)
Yes, but Gamestops was above 150% of float short. So that scenario doesn't matter and fraudulent stuff is going on. Shares were literally created from thin air.
Once the IOU comes due, B will need to acquire a share from D to give back to A, at which point both A and C own a share - but D no longer does.
At no point are there any magic duplicated shareholding rights.