ESG 0.00% 86.5¢ eastern star gas limited

greenme - the holder that lends the stock normally has a long...

  1. 322 Posts.
    greenme - the holder that lends the stock normally has a long term strategic holding in the company, so they don't care about short term price fluctuations. The upside for them however is they receive interest payments on the borrowed stock. eg, if someone borrowed 10,000,000 ESG shares at 80c, is $8m. So at say 6.5%, they receive $10k a week interest payments from lending the stock.

    So they are effectively being paid on the value of their long term holding, with no concern about ST price fluctuations, and no risk as the risk is on the borrower.
 
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Currently unlisted public company.

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