I understand the basics of shorting a stock and read some articles online but the borrowing the stock you want to short is what I don't understand.
If John wanted to short 100 shares of XX stock which is $40 a share, his broker would look for someone with the 100 XX shares to borrow from which happens to be me.
What are advantages/disadvantages for me letting John borrow my 100 shares? Who sets the time on how long John can borrow my shares?
Has anyone had experience on both sides of shorting a stock?
I am just looking for more detailed knowledge about the borrowing part of shorting a stock b/c I can't seem to find it anywhere. Thanks for your time. :)
Submitted March 03, 2017 at 11:36AM by Chwo55 http://ift.tt/2m3IQ6W
