InvestorsHub Logo
Followers 59
Posts 2025
Boards Moderated 1
Alias Born 05/07/2003

Re: rookiecrd1 post# 32687

Friday, 05/20/2011 3:00:38 PM

Friday, May 20, 2011 3:00:38 PM

Post# of 95203
The favored method to monetize restricted stock is via stock lending. There are institutions who will lend money on the collateral of the restricted stock. These same institutions will commonly short the stock to arbitrage their risk away. Generally, the loan is never repaid and the institution sells the stock or uses it to cover their short position.

It's a seedy business.