Hi all,
Firstly happy Easter. I have a question I need an answer to based around shorting.
My understanding of the process is that a institution buys a parcel of shares at say a dollar each. They them loan them out to a shorter for a commission. The stock in then shorted down to 50c, the shorter buys back in hence doubling his stock holding. Pay back the lender his original stock borrowing plus commission. The shorter now have free stock to then on sell for his profit
The question I have is, now the lender has his stock back but valued at half the price, other than the commission he has received what is in it for the lender ?
Thanks for any feedback
the proces of the short lender
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