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Shorting - impact on original shareholder

B

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?
 
Benjamin said:
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?
Click to expand...
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!
 
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