Toddsterpatriot
Diamond Member
1) How can the short percentage be 139%?
1) How can the short percentage be 139%?
1000 shares outstanding. Melvin Capital borrows 700 shares and sells them.
Citron Research borrows 690 shares and sells them.
Long stock holders now hold 2390 shares, Melvin is short 700, Citron is short 690.
If there are only 1,000 shares outstanding, how can long stock holders end up with 2,390?
If Melvin borrows 700 of the only 1,000 outstanding shares, there are only 300 left to borrow; how does Citron then borrow 690? If I hold a share, can I loan it out more than once, creating new shares from thin air?
If Melvin borrows 700 of the only 1,000 outstanding shares, there are only 300 left to borrow;
When Melvin sold them, the new buyers now have 700.
If I hold a share, can I loan it out more than once,
Nope.