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.
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Last
$5.92 |
Change
-0.020(0.34%) |
Mkt cap ! $4.279B |
Open | High | Low | Value | Volume |
$5.87 | $5.98 | $5.87 | $20.08M | 3.396M |
Buyers (Bids)
No. | Vol. | Price($) |
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3 | 16080 | $5.92 |
Sellers (Offers)
Price($) | Vol. | No. |
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$5.95 | 1782 | 1 |
View Market Depth
No. | Vol. | Price($) |
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3 | 16080 | 5.920 |
3 | 28582 | 5.910 |
4 | 25161 | 5.900 |
1 | 500 | 5.870 |
4 | 9100 | 5.850 |
Price($) | Vol. | No. |
---|---|---|
5.950 | 1782 | 1 |
5.960 | 6742 | 2 |
5.970 | 45227 | 8 |
5.980 | 22710 | 4 |
5.990 | 33576 | 6 |
Last trade - 16.10pm 26/04/2024 (20 minute delay) ? |
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Last
$5.94 |
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Change
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Open | High | Low | Volume | ||
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Last updated 15.59pm 26/04/2024 ? |
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