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Re: Homebrew post# 516

Monday, 02/17/2020 11:35:03 AM

Monday, February 17, 2020 11:35:03 AM

Post# of 2852
It's the brokerages allowing shorts to borrow other people's shares for a price that I disagree with. Whoever owns those shares borrowed without their permission isn't making any profit from the brokerage allowing the short to borrow the shares. That seems unethical and shady to me. If they, ie the shorter, buys the shares out right and wants to day trade, swing trade, flip those shares that they own (not borrowed) then that is fine. They paid for and own them so they can hold them however long or short they want.

Again, it's the borrowing of shares that don't belong to them, but to other people, that is shady. They use this shady practice to drive sp up and then bash the stock to foment fear and panic selling from retail investors so they can buy those borrowed shares they sold high back low and return them to the original owner. The broker makes money off the shorter borrowing. The shorter makes money but the real owner of those shares doesn't make squat. How is that fair and ethical?
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