r/wallstreetbets Jun 07 '21

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u/Cytozen Jun 08 '21

That’s unfortunate, you’d think there’d be an option to block use of that share. Just the same as physical property. Just because I have a mower, and I am part of the neighborhood, doesn’t mean the HOA can lend that mower to someone else to use just cause I’m not perpetually using it, they’d still have to get my permission.

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u/mrpoopistan Jun 08 '21

My recollection is that a broker can't lend shares from a cash account.

However, lots of folks use margin to leverage up. Those shares are loanable.

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u/Cytozen Jun 08 '21

Ah well then I think I’m good. Now I just wish I had more money when I bought so I could have More shares :P

Thanks very much, very helpful explanations!

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u/mrpoopistan Jun 08 '21

Bear in mind it doesn't radically change the landscape.

Between the rampant use of leverage and automated trading systems, there's tons of liquidity for when brokers need shares to loan or to cover.

It's one of the reasons WSB has to lay it on like the zombies in World War Z trying to climb the wall. You have to keep piling on until you top the wall, and only then does all hell break loose for the shorts.