Securities Lending: The Share Sold Short More Than Once
In January 2021, more of GameStop's stock had been sold short than existed to be sold — 140% of its entire public float.
In January 2021, more of GameStop's stock had been sold short than existed to be sold — 140% of its entire public float. Not a data error: the same borrowed share had been shorted, bought, and lent out again more than once. What securities lending and short selling actually are, why India cleared this market through an exchange while the US left it bilateral, and why that structural choice is exactly what let GameStop's number climb as high as it did — with paired Indian and international examples throughout.
Surya · 6 min read