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Thread: Why would you let people borrow your shares to short if you do not get paid?

  1. Default Why would you let people borrow your shares to short if you do not get paid?

    This might be a simple question but why would you let anybody borrow your shares to short if you do not get paid? Is not that like a conflict of interest?

  2. Default

    You LONg your shares so it can go higher, why would you let somebody borrow your shares to devalue it unless you get something in return?

  3. Default

    Commission + Margin Interest (usually on both ends of the trade).

    Brokers keep stocks purchased on margin and loan them out to short-sellers. They profit on both ends of the deal.

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