GeekEV said:apvbguy said:yes they do, and it is incumbent on them to come up with the stock, shorting stock can become very expensive under certain circumstances.Hence my "robbing Peter to pay Paul" metaphor. In order to give me (Paul) my share back, they have to take it from someone else (Peter). Anyhoo...dgpcolorado said:The brokerage would just find someone else to borrow shares from. Your sell transaction should be seamless.
I don't understand why you keep using the term "rob".
They are not robbing from anyone. They are borrowing the shares and, at least in my case, paying me for doing so.
If I decide I want to sell my shares, I do so. The broker then borrows the shares from someone else and starts paying them for the borrowed shares.