As part of the puzzle because it is "in-house" borrowing: Market makers, such as brokers, often require the ability to borrow shares for day-to-day share trading. This is often the case for small-cap companies where there may be few shares available to buy on the open market. When a company’s shares can’t be easily be bought or sold on the open market, these companies and their shares are described as being illiquid. Market makers and institutional investors can lend and borrow shares amongst themselves as a way to trade illiquid shares.
Because the tangled web looks like JP Morgan Chase borrowed from its other affiliates and the trading data supplied shows the daily buy/sell routine by the broker, the above is valid. The only real concern is the activity on 18th Nov where it looks like up to 33.5 million shares were borrowed on that day. The lenders agreement shows Citicorp, Merrill Lynch and Blackrock as the borrowers...whether this is them taking short positions or joining in the market maker fun...I can't tell you. But expect either because it may also be a hedge for a long position. Any others got a tilt? I trade the stock and take both holding positions.
MSB Price at posting:
$1.58 Sentiment: Hold Disclosure: Held
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