I understand what the actual process of doing so is, but for example I’ve seen people who work on wall street try to reassure us that it’s a normal and healthy part of wall street. I don’t understand how it’s allowed, or why any company would allow it to happen to their shares?
In: Economics
To the investor/brokerage lending out the shares, it’s just another way of making money off shares sitting in their account, since the individual shorting the shares is paying them a small amount.
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