Share Recall – What is it and how does it help a company?

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Why would a company recall its shares?

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“Share recall” normally refers to something that a broker or someone who loaned shares does, not something a company does.

This frequently shows up in short sales. Suppose you own 100 shares of company XYZ that you’re not planning to do anything with for a while. You can loan those shares to somebody else (for a small fee) and make a little extra money that way. When you want them back you do a “share recall”, you tell them you need your shares back.

The other person might want to borrow shares so they can sell them, hoping to buy them back later at a lower price so they can give them back to you. This is a way to make money off a falling share price.