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Posted On: 01/22/2021 1:45:10 PM
Post# of 153980
1. http://www.firstamericanstock.com/index.php/a...-practice/
2. As long as they're willing to pay the interest on the borrowed shares they stay borrowed. Of course at some point the cost of the interest would wipe them out.
There is also a common misconception about the short squeeze. As long as the borrowed shares are not sold then a borrower can simply return them and eat the cost of the interest. It's only if shorts sell the shares and don't cover that you'll see the squeeze. If the interest is low enough they can be held until an opportune time to dump presents itself.
2. As long as they're willing to pay the interest on the borrowed shares they stay borrowed. Of course at some point the cost of the interest would wipe them out.
There is also a common misconception about the short squeeze. As long as the borrowed shares are not sold then a borrower can simply return them and eat the cost of the interest. It's only if shorts sell the shares and don't cover that you'll see the squeeze. If the interest is low enough they can be held until an opportune time to dump presents itself.
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