RE: Short squeeze23 Nov 2023 19:29
Kirti12shah.
Shorting Co's don't buy shares. They borrow them.
"Short selling a stock is when a trader borrows shares from a broker and immediately sells them with the expectation that the share price will fall shortly after. If it does, the trader can buy the shares back at the lower price, return them to the broker, and keep the difference, minus any loan interest, as profit."
So brokers make additional money by lending out, sometimes, your shares!
Many share holders used to set a very high limit to sell on their shares (I used to sometimes).
Thus the shares would be "put to one side" so they could NOT be lent out, in case the limit to sell level amazingly happened. Some sites now won't let you set a limit to sell above a certain percentage above the current price thus putting people off doing this who intend to hold for a long time.
All IMHO.