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Short Interest: Its Influence as a Stabilizer of Stock Returns

Published online by Cambridge University Press:  06 April 2009

Luis Hurtado-Sanchez
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Extract

Short interest is the number of shares of a stock borrowed for sale (and not yet replaced) by investors who anticipate a decline in the stock's price. After its price falls, the stock is purchased to replace the borrowed shares, the selling price being higher than the purchase price whence the profit. The New York and American Stock Exchanges disclose the current outstanding short interest for the market as a whole and for selected stocks around the 15th of each month.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 13 , Issue 5 , December 1978 , pp. 965 - 985
Copyright
Copyright © School of Business Administration, University of Washington 1978

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References

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