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Quick Question about Short shares and Float (newbie)

Discussion in 'TSLA Investor Discussions' started by mdevp, Nov 11, 2014.

  1. mdevp

    mdevp Member

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    Confused about this,(last months data), if there are 23m Tesla shares short, 95.7m shares float and 80% of shares are owned by insiders and institutions, how are there 23m shares to short? Newbie here, I've never shorted anything, only bought long and rarely bought a few leaps here and there, thanks.
     
  2. MikeC

    MikeC Active Member

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    I think the simple answer is that once a share is sold short, it can then be lent out to be sold short again by the new owner.
     
  3. FrozenCanuck

    FrozenCanuck Member

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    It's simpler than this. If I'm long, so I own shares, my broker can lend those out to someone who wants to short the stock.
     
  4. wycolo

    wycolo Active Member

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    Negatory. Only margined shares can to loaned to 3rd parties. If you actually own the shares they cannot be loaned out by your broker.
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  5. FrozenCanuck

    FrozenCanuck Member

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    Shares are not margined. Accounts are margined. But you are right that margin is a required component. There usually needs to be a debit balance in an account to use shares for borrowing.
     

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