InvestorsHub Logo
Followers 239
Posts 6860
Boards Moderated 0
Alias Born 01/21/2017

Re: ncym post# 28738

Monday, 05/01/2017 10:17:14 PM

Monday, May 01, 2017 10:17:14 PM

Post# of 52994
The point is that people are not shorting sub-penny stocks. It would not make sense. The short report has nothing to do with shorting stocks - which is borrowing shares, essentially.
It is simply stocks in play that have not yet cleared the buy/sell process, which is exactly what I said.
Brokers don't buy your stocks usually, they find a buyer and close that sale, then buy yours. It takes 3 days to clear the whole transaction. This can happen many, many times during that 3 days, so it has to be kept track of. The short report does that. Some of the shares in the short report have been sold and bought multiple times in that three days. Or could be.
It is an entirely different thing than 'shorting' a stock by a trader or business. In that case, they aren't 'buying' the shares, they are borrowing them, hoping to get them at a lower price later. They 'reserve' them. If they go up instead of down, they lose, sometimes big time. That is why it would make no sense on a sub-penny stock - you could lose hugely, but you could only profit by sub-portions of a penny per share if it went down.