What determines whether a stock is easy to borrow or hard to borrow?
I am wondering all the different factors. Is it simply determined by how many people are trying to borrow it or are there other factors?
Well what you didn't explain is the fact that a large part of income for institutions, besides commissions is securities lending. It's sort of messed up funds will lend out there clients shares to brokers and collect interest for lending. I know because I worked at an institution and we processed the transactions for large fund companies like Barclays Global investors. This is not to say they will be lending out some AENY but some hedge fund or other small fund might.
BIG J...are you stupid or what? For being ranked 20, I would say yes you are dumb.
Shares of any company, whether penny or main stream are allocated based upon percentage of ownership within whatever entity has paid for ownership of those equitable positions. If a broker has clients with ENOUGH AVAILABLE SHARES to distribute out to short-sale requests (resting limits usually), then they will. If they don't, THEY DON'T. There is no "WHY". The WHY is that the shares are not available because there are NONE AVAILABLE....
big J what makes a stock ETB Vs HTB, usually relies on a few different factors.....the float of the stock, basically the quantity of shares available to be lent out, the demand to short the stock, etc......it basically is a supply v demand microeconomic issue.....large supply, low demand, ETB, low supply, high demand, HTB......hope that helps
bigjj- thanks for the kind, respectful, mature response :) It also appears you are creating multiple profiles, so that's pretty awesome too. Go you. The internet is a great resource for insecure people like you to anonymously flame others. I never asked "WHY." Thanks though. FYI, I happened to know the answer to this question already, just thought it would be a good one to ask so others can see the answer. Idk much about this ranking system but it appears I am ranked 7 and you are ranked 22. I've only answered one question so maybe if i answer more I will move up and be able to feel good about myself. Stop being such a dick.
Hey J-
I browsed one of Tim's posts where it looks like you had it out with somebody that disliked Tim's podcast last week. I'm not trying to start fights here, but don't play an angel. You said some pretty nasty, immature, and ridiculous things too. From what I can tell, he was voicing his opinion (where else should he voice opinions of Tim other than at Tim's site, not saying I AGREE with him AT ALL), and you actually came out of the blue a few days late and blasted him. So, fair is fair and don't pretend to Tim that you are goody-two-shoes. Anyways, back to pennystocks! I love the new answers stuff Tim!
Not pretending to be a goody-two-shoes smart. I don't mind flaming on a blog comment board but would like to keep this answer site cleaner. I flamed him same day btw. He was voicing more than an opinion too. If you want to address what I said on the blog, feel free to address any specific. Not here though, on the blog. It's not over. People gotta stand behind what they say and I can back up any one of my comments
All I'm saying is there's a big difference between what you seem to be implying in your response to Tim above, and the way you behaved on his site during that comment interaction...I'm not here to judge anyone, but you have to let people speak their opinions whether you agree with them or not. Flaming him is likely to receive flaming back, which is exactly what you did, and exactly what happened. I agree though, this place has to be answers...
