Hi, guys. I got a little confusion about stock monetization by short sale.
The textbook states that we can create a riskless position on owned stocks through borrowing same number of stocks and selling them in the marketplace. Thus, a hedged position is created and sort of funds are generated that can earn money market return. In addition, we can also borrow certain amount of money against hedged position with high LTV.
My question is: Are we generating 2 different sources of cash flows? One from selling at marketplace and the other from borrowing against hedged position?