Lending Shares for Shorting

Why isn't there an online market for lending your shares to someone if its a hard to borrow equity? I would definitely let someone borrow my shares and charge them interest... of course there needs to be rules about when you can Margin Call..

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Best Response
azndarkvader

Why isn't there an online market for lending your shares to someone if its a hard to borrow equity? I would definitely let someone borrow my shares and charge them interest... of course there needs to be rules about when you can Margin Call..

Because your broker or your bank is doing that for you and making a fuck load of money from it. On a bigger level if you are a corporate, or a fund, your PB will ask you if they can borrow your shares and lock them in for longer period of times and pay you for it. So there is a market for it, just not for you as you are chicken shit compared to the big institutional players.

 
Disjoint azndarkvader:

Why isn't there an online market for lending your shares to someone if its a hard to borrow equity? I would definitely let someone borrow my shares and charge them interest... of course there needs to be rules about when you can Margin Call..

Because your broker or your bank is doing that for you and making a fuck load of money from it.
On a bigger level if you are a corporate, or a fund, your PB will ask you if they can borrow your shares and lock them in for longer period of times and pay you for it.
So there is a market for it, just not for you as you are chicken shit compared to the big institutional players.

It's amusing someone would even ask this.

 

Then make that site. Don't sit on your ass waiting for someone else to make it for you.

CNBC sucks "This financial crisis is worse than a divorce. I've lost all my money, but the wife is still here." - Client after getting blown up
 

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