Sudre
Active Member
A few questions if you don't mind me asking:
I am beginning to wonder if a lot of this shorting is institutions like Edward Jones for example trying to make as much as possible on a trade. I know when I used to buy or sell stock directly in a fund I had with them there was at LEAST $100 commission fee each way plus a $5 transaction fee. They could easily borrow the shares at 10am when I bought, hand me the stock, then wait for it to drop and make a fortune off the thousands they trade every day. If the stock didn't move below my buy price any time within the rest of day they could easily cover the small fee off the commission they charged me and still make good money settling at the end of the day.... heck do large institutions even pay a fee or do they just borrow from themselves on a day trade to cover like that?
If Fidelity has a million shares and they loan shorts 500K do they still report they have a million shares or do they have to report those loaned shares as a reduction in their total?
If Fidelity had a bunch of clients purchase shares when the price was around $350 and Fidelity felt there was a good chance the price was going to drop $50 or lower, would they not just sell their shares to their retail buyers (with fees) knowing they could buy them back later at a much lower price?
I am now beginning to see why being an institution is a win win for profits.
I am beginning to wonder if a lot of this shorting is institutions like Edward Jones for example trying to make as much as possible on a trade. I know when I used to buy or sell stock directly in a fund I had with them there was at LEAST $100 commission fee each way plus a $5 transaction fee. They could easily borrow the shares at 10am when I bought, hand me the stock, then wait for it to drop and make a fortune off the thousands they trade every day. If the stock didn't move below my buy price any time within the rest of day they could easily cover the small fee off the commission they charged me and still make good money settling at the end of the day.... heck do large institutions even pay a fee or do they just borrow from themselves on a day trade to cover like that?
If Fidelity has a million shares and they loan shorts 500K do they still report they have a million shares or do they have to report those loaned shares as a reduction in their total?
If Fidelity had a bunch of clients purchase shares when the price was around $350 and Fidelity felt there was a good chance the price was going to drop $50 or lower, would they not just sell their shares to their retail buyers (with fees) knowing they could buy them back later at a much lower price?
I am now beginning to see why being an institution is a win win for profits.