Deals
Shorting Alibaba Costs 7% to Borrow Shares After IPO
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Convinced Alibaba Group Holding Ltd. is doomed to fall after the world’s biggest initial public offering? Now you can make that bet in the stock market.
Share transactions from the China e-commerce company’s first day of trading on Sept. 19 have been completed after a three-day settlement period and brokers are making them available for loans. That’s the first step in a short sale, where a bearish trader borrows a stock and sells it, hoping to profit by replacing it at a lower price.