• @Varyk@sh.itjust.works
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    11 year ago

    Wait a tick. if I buy 100 shares of Microsoft from a brokerage, the brokerage can still short those shares that I have bought?

    • @TheHog@feddit.uk
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      11 year ago

      Yes! Or more accurately “lend” them to someone who will.

      Even if you have a broker that promises not to there is minimal regulation to stop them and if they get caught the fine is a (small) fraction of the money they make on that transaction (which is just a cost of doing business). I believe this was shown in r/superstonk just by someone looking at the sec filing.