Motors Liquidation Company (fka MTLQQ)

[eddy2]

Interesting how investors think reading these posts but if you think about it if you shorted the stock you are still required to cover your short position even if the old commons are wiped out so the one lending has an advantage as well, hedge funds do it all the time.


Should the lender get his shares back he will turn around and sell them into the market if he can.


Now what you have to understand is your not really lending cause you have taken collateral for the shares from the one who borrowed them in the form of debt that the borrower ha set up to borrow your shares so if your going to borrow shares and hold debt against that asset it better be a good asset or the lender will be taking something else from you like our home, car ect. and if you ever set up a trading account were you can borrow funds to buy equity what is they want to know your S I N to garnish your wages if your asset is worth zip you borrowed on.


Should it go the other way well again they can garnish your wages for live if you can't pay.