I don't think shorting involves borrowing shares from another holder...
As I understand...Shorting is merely trading a contract (ie. CFD). For example...I agree to sell you Ferrari for 100 grand. Lets say this is a great deal for you as these usually cost 250...but there is a catch. I don't have a Ferrari yet but I'm planning on getting one soon for lets say 50 grand, from someone else. If the guy that was going to sell me his Ferrari for 50 grand crashes the car and can't sell it to me, then I have to get one from somewhere else, at whatever the cost. I'd still be obliged to sell you the car for the agreed price of 100. If the next cheapest one around is 150 then that deal just cost me 50 grand...and if I can't get a Ferrari at all..then I have no idea what happens in that case? Actually I'm not entirely sure what happens with shorts in terms of trading halts and liquidation etc. I'm assuming there is something written in the contract in case of these rare events.
AGO Price at posting:
92.0¢ Sentiment: Buy Disclosure: Held
