Thursday, July 16, 2020 5:11:26 PM
https://www.investopedia.com/ask/answers/05/lendersellshare.asp
Quick question to those more familiar with how trading houses and brokers work.
- Say a CytoDyn shareholder had 100K shares $CYDY that were just sitting in their trading account - no sell or buy orders on them.
- There are indications of a run up and shares are being borrowed short on $CYDY.
- That CytoDyn shareholder then puts in a limit sell order on all 100K shares $CYDY at $100.
1) Would the CytoDyn shareholder's account be affected at all to prevent putting the sell order in at $100 due to the shares "borrowed" on their account?
2) Would the broker that let them be "borrowed" just cover both - which indicates to me that those "borrowed" shares have no backing and become "naked shorts" and effectively mean that the number of shares the broker holds has doubled until EoD where someone would have to settle?
3) Would any of the sellers that "borrowed" any of the shares be given notice that they have to scramble to find a new source?
I do not consider any responses to be investing advice and hopefully everyone else will regard responses the same.
....AFAF
...hehehehe....It should all be in the timing....heheheheeh....
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