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I still don't see what benefit the lending entity gets from all of that. They lend a stock out for the hedge fund to short, then get those stocks back. What's in it for whoever is lending the stocks in the first place?
I still don't see what benefit the lending entity gets from all of that. They lend a stock out for the hedge fund to short, then get those stocks back. What's in it for whoever is lending the stocks in the first place?
Not sure, and this all new to me too, but I can see how the stock lender may benefit from lending the stock out to a short seller, the sort seller takes all the financial risk, the stock lender will always get his stock back, albeit higher or lower in value but the lender didn't need to use their money, only the short puts up that risk.
I could be wrong, but something along those lines.
Not sure, and this all new to me too, but I can see how the stock lender may benefit from lending the stock out to a short seller, the sort seller takes all the financial risk, the stock lender will always get his stock back, albeit higher or lower in value but the lender didn't need to use their money, only the short puts up that risk.
I could be wrong, but something along those lines.
Yea.. after thinking about it, all I can think is it's just higher level gambling. They could either win or lose, but they still move stocks
Yea.. after thinking about it, all I can think is it's just higher level gambling. They could either win or lose, but they still move stocks
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