ACR 3.45% 5.6¢ acrux limited

Slogger"not sure I follow - wouldn't you know if you are...

  1. 7,424 Posts.
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    Slogger

    "not sure I follow - wouldn't you know if you are "selling" the shares to the shorters?"

    You would have to read the fine print of your broker or custodian agreement (and how many of us do that?).

    "how does a custodian relationship work and wouldnt they be telling you what they are up to?. thats a worry - but if you trade yourself then there shouldnt be any issues regarding this - is that rtight - would hate to think the shares I thought I had are "gone".

    Stock lending arrangements are quiet common on bond and equity markets. The fees generated from stock lending are one way custodians and broker augment there paper thin margins, or keep client costs down.
    Most stock loans are overnight, so the shares aren't "gone" for long.

    The real issue is that owners of shares can unknowingly contribute to the distruction of their own wealth, by facilitating short selling attacks on companies they own.
 
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