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cwhiz
1971 days ago
How can you get to a point where 140% of the shares are shorted without naked shorts?
1 comments
TheCoelacanth
1971 days ago
A owns 1 share (the only share in existence for simplicity) and lends it to B.
B short sells to C.
C lends 1 share to D.
D short sells.
200% of outstanding shares are shorted.
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B short sells to C.
C lends 1 share to D.
D short sells.
200% of outstanding shares are shorted.