ST Alpha - "You can chain short sellers to create more shares. " (Reading a Post)

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In response to "I have a question, how can something be more than 100% shorted? -- nm" by ty97

You can chain short sellers to create more shares.

Posted by spamlet Jan 28 '21, 05:06

Let’s say that you and I both want to short a stock that beaker owns. I borrow it from beaker and sell it to Reagen. You then borrow the stock from Reagen and sell it to Andie. We’ve now created 3 owners of the stock and 2 short sellers from 1 share.

Responses:

You've really let yourself go, Margot Robbie in a bubble bath -- nm - con_carne Jan 28, 05:32 1
- +10 Qale Points -- nm - Qale Jan 28, 07:18

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You can chain short sellers to create more shares.

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