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How more than 100% of the shares can be shorted.

Posted on: January 28, 2021 at 00:15:02 CT
JeffB MU
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Someone owns shares. He puts them out for loan for a fee or his trading platform does.

Someone who wants to short the stock borrows the stock for an ongoing interest fee (which can be quite high annualized), with a promise to return it, and sells it to someone else. If the price goes down he can buy it back for less than he purchased it and return it to the person (not necessarily the same persons) and pockets the profit.

But before he returns it, the person he sold it to can loan it out to another person who is shorting the stock.

If that person does shorts it and sells it to another person that stock has been shorted twice. 200% if it was all of the stock outstanding.
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These reddit guys blowing up hedge funds shorts is - MUTGR MU - 1/27 21:40:11
     I'm looking forward to the movie(nm) - tigerinhogtown STL - 1/27 23:41:30
          We're going to put some of our gains into - Say_What MU - 1/27 23:50:18
               RE: We're going to put some of our gains into - MUTGR MU - 1/28 00:39:51
     Saw they went after AMC Theaters and drove it up to $20 - Tigrrrr! MU - 1/27 22:27:36
          that dismissive attitude is the problem - gmmm98 MU - 1/28 04:29:12
          My son has been following the story since the beginning. He - JeffB MU - 1/27 22:29:22
     This same stuff went on in the housing bubble - meatiger MU - 1/27 22:10:38
          But that was the opposite. A handful of traders, mostly - MUTGR MU - 1/27 22:57:15
               this was even after all that - meatiger MU - 1/27 23:01:58
          RE: This same stuff went on in the housing bubble - MUTGR MU - 1/27 22:21:21
               There were a lot of conspiracy theories going on Reddit. - JeffB MU - 1/27 22:34:26
                    You might understand this completely already but this - MUTGR MU - 1/27 22:39:52
                         And this is why it is now an ideological crusade - Say_What MU - 1/27 23:36:26
                         Yeah, when my son decided to cash in he placed a sell - JeffB MU - 1/27 23:02:37
                              Never do a market order - meatiger MU - 1/27 23:05:54
                         that's awesome (nm) - pickle MU - 1/27 22:49:55
                              They are loving this... - MUTGR MU - 1/27 23:16:28
                              RE: that's awesome (nm) - MUTGR MU - 1/27 22:51:00
                         Interesting(nm) - meatiger MU - 1/27 22:44:55
                              Check this out.... - MUTGR MU - 1/27 22:46:35
                                   I would sell half of it - meatiger MU - 1/27 22:57:39
                                        RE: I would sell half of it - MUTGR MU - 1/27 22:58:43
                                             It will end badly - meatiger MU - 1/27 23:04:47
                                                  How more than 100% of the shares can be shorted. - JeffB MU - 1/28 00:15:02
                                                  RE: It will end badly - MUTGR MU - 1/27 23:06:02
                                                       Why doesn't the SEC get to the bottom of that? - Say_What MU - 1/27 23:42:53
                                                            It should be the stock exchange - meatiger MU - 1/28 00:01:59
                                                                 IDGAF who's job it is.... get to the bottom of it - Say_What MU - 1/28 00:09:19
                                                                      what am i missing? - gmmm98 MU - 1/28 05:03:59
                                                                           No clue but im making huge money off their mistake (nm) - Say_What MU - 1/28 06:31:11
                                                       I am the same - meatiger MU - 1/27 23:08:59
               The big guys got their hands slapped during the housing - meatiger MU - 1/27 22:34:21
     The mooch was right when he says we are witnessing the - Say_What MU - 1/27 21:42:53




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