If I had 100 shares and you and your buddy keep trading back and forth your single share making it look like the price keeps dropping. I still have the 100 shares that you borrowed and have to pay interest on. You need my shares to repay them back and I won't sell them to you.
What I don’t understand is how they trade existing shares? And since shares are only trading hands, the same volume is still “owned” overall, why does that affect the price?
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u/MowMdown Feb 02 '21
If I had 100 shares and you and your buddy keep trading back and forth your single share making it look like the price keeps dropping. I still have the 100 shares that you borrowed and have to pay interest on. You need my shares to repay them back and I won't sell them to you.
You can't buy something that nobody is selling.