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Strategies & Market Trends : The Final Frontier - Online Remote Trading
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To: Ira Player who wrote (10478)8/30/2002 4:00:12 PM
From: LPS5  Read Replies (1) of 12617
 
They pay nothing to borrow the stock themselves and receive the interest on the proceeds from the sale while the position is open.

Huh? Actually, stock loaned to short sellers isn't borrowed by the brokerage firm per se; it comes from an aggregate lending/hypothecation pool among margin account holders at that firm or the clearing firm, if the brokerage firm is introducing. And depending upon where you trade - and, more importantly, how large your account and average positions are - you should be getting credited while you're short. Maybe not 'should,' but 'might.'

LP.
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