RE: Js3 Dec 2021 10:06
Just to elaborate further on SBET positions, if JS takes a long position, i.e. bets that the shares will go higher, he will have to pay interest on the cost of the shares he has taken control over. So as HD says, he has to judge that the interest paid will be less than the CGT that he would be liable for on fully owned shares. That only takes a small rise in the share price to be justifiable.
But bear in mind that the investment must also be justifiable in relation to the risk involved. Otherwise he would just take his money elsewhere. He may have an informed idea of where the business is really going, or he may just like to take risks and be part of the in-crowd. Personally I'd think that he's here to make money, and a lot of it.
If he takes a short position, then there is no interest to pay, in fact he may get interest paid back to him. He would, however, be liable for the costs of any dividends paid in the future if he still holds the short. And if the share price goes up he stands to lose a packet.
This is all in my own understanding, but please correct me if I've put anything wrong. And please get independent advice before you invest in ANYTHING. You can easily lose your shirt if you don't.