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$5.83 lynas rare earths limited

I am confused. If CS have bought these shares to lend to a...

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Qoka

1,166 Posts.

539

03/04/19

10:36

Post #: 37973735
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Originally posted by ROEROC: ↑

if someone want to short a stock, they have to borrow from someone (usually fund managers or investment banks) who has them and paid a fees a lot investment bankers through various mechanics, derivatives and options can take this opportunity load
up some shares lender out to shorter and pockets the fee.

Shorters don't care they dont want to own the stock they only want to borrow sell it at current market price
and think they can buy back a lot cheaper and then repay their lender.

Sometimes they are right and sometimes they are wrong, if they are right they profit from share decline from here
if they are wrong, shares can goes up and at some point they decided they had enough and buy back the shares at higher price and close their position at a loss, the stats in the shorters favour though, they usually wins more than they lose as they always betting stocks that has head winds and cap price movement

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I am confused. If CS have bought these shares to lend to a shorter, they no longer own them. That’s not what the Notice of Substantial Holder shows. It seems to me that shorters are selling phantom shares, in which case, what is the buyer getting?

LYC Price at posting: $2.15 Sentiment: Hold Disclosure: Held
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(20min delay)
Last $5.83		Change -0.080(1.35%)		Mkt cap ! $5.449B

Open	High	Low	Value	Volume
$5.89	$6.04	$5.83	$18.89M	3.204M

Buyers (Bids)

No.	Vol.	Price($)
4	17984	$5.83

Sellers (Offers)

Price($)	Vol.	No.
$5.87	3952	2

View Market Depth

No.	Vol.	Price($)
3	15984	5.830
5	24824	5.820
4	15929	5.810
13	35551	5.800
5	14993	5.780

Price($)	Vol.	No.
5.870	3952	2
5.880	12372	1
5.890	16857	2
5.900	12372	1
5.920	7400	2

Last trade - 16.10pm 06/08/2024 (20 minute delay)

LYC (ASX) Chart