short selling

  1. 811 Posts.
    Hi everyone, i have a question regarding short selling, i understand how it works but where does the borrowed stock come from? i know a lender but where does the lender obtain the stock from? example i will give is you or i will not lend our stock/ house/ car so that the asset can reduce in value as in selling quickly ie over supplying demand etc, i was wondering if this stock lent is from clients brokerage accounts with out individuals knowledge or backed by the various products on offer where fees go straight to clients who knowingly lend their stock. hope i have explained this question correctly, always hard to trust the financial system
 
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