Forum Topics WBT WBT Becoming a substantial holder

Pinned straw:

Solvetheriddle
Added 12 months ago

Looks like prime broker to me. look at middle column explanation. lending to Hf for shorting is my read

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Macca571
Added 12 months ago

I don't really understand this stuff @Solvetheriddle. From your read on this, do you think that the SP will become even more volatile????

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Solvetheriddle
Added 12 months ago

@Macca571 maybe i should write something on the mechanics behind shorting, there seems to be a lot of interest on SM, my brother-in-law use to work for one of the big prime brokers, so i know a bit about it (not everything). in short yes, means the shorters see downside in the stock but will have to cover it, ie buy back the shorted stock at some stage, if the share price is lower when they do this they make a profit, sell high buy low in that order.

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CanadianAussie
Added 12 months ago

My understanding is that JP Morgan is likely just an intermediary and not actually buying or shorting the company itself. But maybe someone wiser than me can shed more detail on it.

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