Running discussion on SP, page-5613

  1. 239 Posts.
    lightbulb Created with Sketch. 319
    But this makes no sense.

    "At some point in the future I will get the shares back." - Yes you will, but now the market value is say half the value of what it was when you lent them. Your 1 million shares were worth say $6m at $6.00 per share. If the shorter closes their position today and gives you your shares back, your investment is worth $3m and you have lost $3m on paper.

    As the original owner I don't care if borrower makes or loses money, I pick up interest on the shares lent. Yes you have picked up interest - let's say you earned 20% interest per annum (I have no idea what the rate is but that seems high enough). In the last 2 months, on your $6m you have earned roughly $200k in interest, so you are up $200k on interest, but down $3m on your investment's market value, a net loss of $2.8m.

    There must be something I am not understanding about why these shares are being lent to shorters.
 
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(20min delay)
Last
$1.82
Change
0.055(3.13%)
Mkt cap ! $378.2M
Open High Low Value Volume
$1.76 $1.90 $1.76 $1.164M 633.9K

Buyers (Bids)

No. Vol. Price($)
1 795 $1.82
 

Sellers (Offers)

Price($) Vol. No.
$1.84 10087 2
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Last trade - 16.10pm 04/07/2025 (20 minute delay) ?
WBT (ASX) Chart
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