They are not shorting the stock themselves. The scenario discussed above was whether they might lend shares to short sellers.
To me I can't see any reason why they would "trash the stock" as you say. There is simply no benefit in it to them.
Lets say hypothetically, they lend 20% of their holding (or 1% of A2M's overall shares) and that goes on to be shorted.
1) If the SP decreases, the shorters profit whereas Vanguard would see a decrease in the value of the other 80% of their holding. This would far outweigh what they make in lending fees/interest etc
2) if the SP increases, Vanguard profits on their main holding + still rakes in the interest /borrowing fees.
Explain to me why on earth they would prefer outcome 1 over outcome 2 - it would make no sense.
Ann: Becoming a substantial holder, page-22
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Last
$6.99 |
Change
-0.110(1.55%) |
Mkt cap ! $5.053B | |||
| Open | High | Low | Value | Volume |
| $7.10 | $7.15 | $6.92 | $7.476M | 1.069M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 3309 | $6.99 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.00 | 27375 | 11 |
View Market Depth
| Last trade - 16.10pm 14/06/2024 (20 minute delay) ? |
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Last
$7.00 |
Change
-0.110 ( 2.00 %) |
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| Open | High | Low | Volume | ||
| $7.09 | $7.11 | $6.91 | 385574 | ||
| Last updated 15.59pm 14/06/2024 ? | |||||
| A2M (ASX) Chart |