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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weebit nano ltd
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Last
$1.77 |
Change
-0.065(3.55%) |
Mkt cap ! $367.8M |
Open | High | Low | Value | Volume |
$1.81 | $1.84 | $1.74 | $737.8K | 412.9K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 54 | $1.77 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.80 | 2227 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 54 | 1.765 |
2 | 2780 | 1.760 |
1 | 1000 | 1.750 |
1 | 5814 | 1.720 |
2 | 21543 | 1.710 |
Price($) | Vol. | No. |
---|---|---|
1.795 | 2227 | 1 |
1.800 | 1069 | 1 |
1.815 | 1000 | 1 |
1.820 | 816 | 1 |
1.840 | 9710 | 1 |
Last trade - 16.10pm 08/07/2025 (20 minute delay) ? |
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