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| Topic | One thing I still don't understand about this whole gamestop saga |
| Epyo 01/31/21 2:04:59 PM #11: | I don't understand this part either. BUT my guess is, the owners of the shares, when they lend out the shares, they charge a fee upfront, that isn't based on the share value, just some constant fee. So, the owners of the shares do make money off of this--in fact, it's probably risk-free easy money for them, since they get their money immediately, and the borrowers are obligated to give the shares back in the end. Whereas, the people borrowing the shares, are only going to make money if the Short goes according to plan, so there's risk there. BUT they make more money than the original share owners, as long as it all goes right. Don't know if any of that is true, just my guess. EDIT: Oh Inviso said this same thing 2 posts above. --- People who don't finish their sentences I'm a Castlevania superfan! Ask me anything! ... Copied to Clipboard! |
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