Short Sales - Here is the latest look through, page-188

Hi @Birchcorp,

Thinking about these shorters and I have a question if you don’t mind.

I understand that the shorters borrow the share, sell it, and then subsequently plan to buy it back cheaper, after which they can return it to the broker and then keep the difference (between the price they sold it at and bought it back at) as profit.

What I don’t understand is how the broker benefits from this, -as in lending it out would mean they can’t sell it, thus are locked in long for the long haul. (Which of course is fine if ultimately the share price goes up over the long term).

Does this infer that the brokers are actually happy being long on the shares they lend out? - therefore infer they have long term confidence in the share price ultimately rising?

I assume they probably receive some sort of fee for the lending it out, but if a share price (such as ARU) pulls back more than 50%…..are not the brokers exposing themselves to far greater losses by not having the ability to cut their losses and sell if the news in the meantime isn’t what they were hoping for?

Are the brokers not giving the shorters the ability and the motive to reduce the value of the brokers own investment/holdings?

Are the brokers not at odds with the shorters that they are directly lending to?

Wondering what I am missing….