OK, learning time. My super portfolio is long only.Is that...

OK, learning time. My super portfolio is long only.

Is that because if you borrow the shares and sell them, you have cash in pocket that can earn interest until you cover?

In terms of the arbitrage gain, for example, if I borrowed 1M SLR shares and sold them at yesterday's close $3.50, pocketed $3,500,000 and used that to buy 6.28M IGR shares, at .545 (yesterday's close) that would cost $3,422,600 leaving me $77,400 clear, still owing someone 1M SLR shares. I give them back when my 6.28 IGR shares are converted to SLR, keeping the $77K.

Would whoever I borrow the SLR shares from require some borrowing fee or interest for the time I hold them? Would the broker who let me short sell need to see some security over the borrowed shares?