I understand how short selling work in theory, but not much in real world. Here're some of the questions I have, if anyone could answer these questions it'd be greatly appreciated
- Once they borrowed the shares from a lender (e.g. UBS), how does lender charge the borrower? by some interest rate or what?
- If the borrower is stuck in a share and can't return with a profit, is there normally a deadline when they have to return the borrowed shares? If not, will they be charged extra for borrowing for a long period?
The reason i asked these questions is because even though DMP is heavily shorted, it seems it has strong support on the current level and I expect the current short level to drop significantly when the share buy back starts on 29th Aug which is only 3 trading days to go. I'd love to see the shorters to be burnt but without knowing the theory behind I can't be so certain so just trying to get some more understanding in this area.
Cheers,
PIK
DMP Price at posting:
$43.31 Sentiment: Buy Disclosure: Held
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)