Shorting - impact on original shareholder

Discussion in 'SP5' started by Benjamin, Mar 25, 2018.

  1. Benjamin

    Benjamin Member

    Hola,

    If I short some shares and the owner of the shares decides s/he wants to sell them before I've re-purchased and returned them, what happens? Is the lending shareholder not allowed to sell until I return them?
     
  2. Simon James

    Simon James ActEd Tutor Staff Member

    You can't sell shares if you have lent them out. Most lenders are long-term holders in any event. I guess if you had lent shares and wished to sell them you could borrow some from someone else yourself!
     
    Benjamin likes this.

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