Replies to post #47735 on Aurora Cannabis Inc (ACB)

[Edward]

Most shorter's are just playing the current market for a short term gain when the price runs up, betting in the short term there will be profit taking.(unless the company is in financial trouble and they may hold be short longer). I believe ( not 100% positive) Aurora shares bought on margin are loanable by the broker since you are borrowing the money and do not need your approval. Cash accounts need you approval and they will pay you interest. Don't think there is a problem to find a loaner of ACB since there is appox. 1 billion share float.

Options have time limits, shorting against your long position does not. Just safer. Everything in the market is a risk. Just buying a long position is a risk. Some stocks have less risk than others, but still a risk.As you know there is no guarantee in the market.

[Edward]

As a follow up to my post# 47745,you can sell your ACB shares at anytime no obligation on your part for a time limit, you still own them.

Also for Aurora bought on margin, when a client opens a margin account, there is usually a clause in the contract that states that the broker is authorized to lend—either to itself or to others—any securities held by the client. By signing this agreement, the client forgoes any future benefit of having their shares lent out to other parties.

it is now confirmed you can sell anytime.

LINK:
https://www.investopedia.com/ask/answers/05/shortsalebenefit.asp


The borrowed shares may be coming out of another trader's margin account, out of the shares being held in the broker's inventory, or even from another brokerage firm. It is important to note that, once the transaction has been placed, the broker is the party doing the lending and not the individual investor. So, any benefit received (along with any risk) belongs to the broker.



The broker does receive an amount of interest for lending out the shares, and it is also paid a commission for providing this service. In the event that the short seller is unable (due to a bankruptcy, for example) to return the shares he or she borrowed, the broker is responsible for returning the borrowed shares. While this is not a huge risk to the broker due to margin requirements, the risk of loss is still there, and this is why the broker receives the interest on the loan.

In the event that the lender of the shares wishes to sell the stock, the short seller is generally not affected. The brokerage firm that loaned out the shares from one client's account to a short seller will usually replace the shares from its existing inventory. The shares are sold and the lender receives the proceeds of the sale into their account. The brokerage firm is then owed the shares by the short seller.

[T-Tucker]

When you loan out your shares you can sell them at any time. I loaned mine out many times over the past two years. I made as much as 27%. I won’t loan my shares for lower than 15%. On average I’ve gotten 21%. That is a great return on my 53,000 shares. It has allowed me to buy more shares with the interest I’ve made. I am long and have not sold a share of $ACB. My small amount of shares I own and loan out does not change the outcome or fundamentals which I believe is strong. $ACB is a great company and I plan on holding for 5 years or at some point cash out if I hit a great number.

Chicago you do not give up your shares. You can stop your broker from loaning and you can sell the shares you loan if you decide to sell. For me it’s about making a good return on my investment. And since I am long on $ACB why not take the shorts money when they borrow my shares. GLTA. Long and strong $ACB.