Cost To 'Short' Facebook Stocks Fell From 40 Percent To 6 Percent

When more lendable shares became available than were expected, the cost to borrow Facebook shares for one year, or to “short” shares, fell from 40 percent of the stock’s value Tuesday afternoon to 6 percent Wednesday, according to Astec Analytics, as reported by The Wall Street Journal’s MarketBeat blog.

When more lendable shares became available than were expected, the cost to borrow Facebook shares for one year, or to “short” shares, fell from 40 percent of the stock’s value Tuesday afternoon to 6 percent Wednesday, according to Astec Analytics, as reported by The Wall Street Journal’s MarketBeat blog.

Tuesday, the annualized rate, which was 28 percent at the trading day’s close, was too steep to short, due to high demand, MarketBeat reported.

According to Astec Analytics, some 36 million shares had been borrowed by late Wednesday, up from 26 million at Tuesday’s close.

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