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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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. |
---|---|---|
$1.84 | 10087 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 10000 | 1.805 |
1 | 277 | 1.800 |
1 | 1123 | 1.780 |
1 | 2000 | 1.760 |
1 | 571 | 1.750 |
Price($) | Vol. | No. |
---|---|---|
1.840 | 10087 | 2 |
1.870 | 21515 | 1 |
1.880 | 39100 | 2 |
1.890 | 7627 | 1 |
1.895 | 4944 | 3 |
Last trade - 16.10pm 04/07/2025 (20 minute delay) ? |
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Dr Michael Thurn, CEO & MD
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