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WamplerR

Joined: 01/20/2012 Posts: 1622
Likes: 1170


Copy and paste from a friend


“Short interest can be > 100% b/c suppose a company has 100 million shares outstanding, and 60 million of them are with institutions that participate in stock lending programs, making the shares easy for broker to locate.

Shorts borrow the 60 million shares and sell them. Suppose 40 million of the sold shares end up with institutions that participate in stock lending programs. Shorts borrow those and sell them again. And again. And again.

As a practical matter, you rarely see short interest anywhere near 100%, much less over it. But it does happen. One famous example was the 3Com/Palm spin off in March 2000, the last gasp of the Internet bubble.”

(In response to this post by CavMan1)

Posted: 01/27/2021 at 10:09PM



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  Copy and paste from a friend -- WamplerR 01/27/2021 10:09PM
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  I think it’s that simple -- WamplerR 01/27/2021 8:38PM

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