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Just thinking about something actually market related.
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H3f
Posted 6/26/2025 02:52 (#11275793 - in reply to #11275384)
Subject: RE: Just thinking about something actually market related.


Although you are technically correct saying you can sell any company on NYSE, it can be difficult. Stocks must be borrowed, if not already owned, in order to short sell the stock.
https://www.investopedia.com/articles/investing/100913/basics-short-... "The process begins with investors borrowing the stock from their brokers, which often involves paying interest." I don't think "interest" referenced here is the cost of borrowing the stock which may not have any relationship to a normal interest rate.
https://www.forex.com/en-sg/news-and-analysis/was-ist-short-selling/ "Finding a broker willing to lend you stocks to short can be difficult, as they’re essentially taking on the risk that you’ll be correct and return their shares at a much lower value."
https://www.shortablestocks.com/search.cgi Screenshot of a program to find stocks to short sell.
As an extreme example: https://www.cnbc.com/2024/04/03/trump-media-is-the-most-expensive-us...
"Investors who wanted to borrow Trump Media shares to sell them short on Wednesday would have had to pay financing costs of between 750% and 900% of the price of the stock annually, said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners.
Meanwhile, existing short positions in Trump Media are paying costs of 565% annually, he said."

If the same rules applied in the commodity markets, there would be a limited number of contracts to trade probably linked to yearly commodity production.



Edit: Corrected a copy mistake.



Edited by H3f 6/26/2025 02:58
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