How could the fee be 99%? Doesn't that imply that anyone who takes the short is ... | Hacker News

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esrauch on Nov 22, 2011 | parent | context | favorite | on: Groupon Shares Plunge, Trading Close to IPO

How could the fee be 99%? Doesn't that imply that anyone who takes the short is damn sure that the stock will be worth $0?

pathdependent on Nov 23, 2011 [–]

99% is an the annualized rate. There have been a few stocks with > 100% borrow rate. It implies most of the shorters don't expect to hold for a year (or don't realize the costs.)

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