Registered: Jan 2009
09-29-12 12:34 PM
I follow Tesla and the following was published on one of there forums:
Short-sellers must to borrow shares and pay interest to short them. Since there aren't enough shares to go around (too many bearish investors who don't know the real story), the interest rate has surged in recent weeks. Fidelity Investments, a market-maker in this arena, is currently paying 17% on loaned Tesla shares. It would be most satisfying to make the claim that Detroit auto execs betting on Tesla's failure have financed the purchase of a Model S. I am attempting to do just that.
I have never heard of owner of a stock getting paid for loaning out shares for short sales. Have any of you? If I changed brokers with my shares would they pay me this 17%?
My guess is that this is not the kind of thing that makes it to me the retail trader.