the shorting process involves borrowing shares from selling them in market and then buying them at a cheaper price. what interests me is how and when shorters can smash a company's share price. what is the actual mechanics of it. my sense of it is that shorters seem to start the process going. they sell first then investors who fear losing money panic and sell their shares for sure. Like do they borrow the shares from an institution then wait around for some bad news to sell or are the shares sold by the institution immediately on borrowing? Basically I am trying to work out when the selling is going to start. Has it already started on the days preceding an announcement when the shares are borrowed or will it start on the day of bad news?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)