Vlad Tenev
👤 SpeakerAppearances Over Time
Podcast Appearances
And the way that that works mechanically is you go and borrow the stock from someone who holds it.
There's a marketplace for this.
People who are long it and are holding it could choose to release their stock into this marketplace, and they earn some more income for this.
And then they can call it back.
They can recall it, right?
So let's say you want to short a stock and I own it.
I can lend it to you through the stock lending marketplace.
What are the rules around that?
There's a lot of rules around it.
I think the most important one is that in most situations, I mean, there are some exceptions, you can't sell a stock short
if you haven't secured a borrow.
And that's called naked shorting.
I don't know what that means.
So in order to sell it short, I have to have borrowed it from someone.
You can't short it if you don't have it.