The Wall Street sign will be seen on February 16, 2021 outside The New York Stock Exchange (NYSE) in New York.
Brendan McDermid | Reuters
Heavily shortened stocks have made headlines over the past few weeks after a deluge of retail investments boosted the stock price of GameStop and others.
GameStop shares rose to $ 325 a share at the end of January, while retailers were inspired by the pile of Reddit thread WallStreetBets piling up, creating short-term hedge funds with significant short positions against the stock. The share price has since fallen and is now trading at just over $ 40.
Short selling is a trading strategy that enables investors to take advantage of the depreciation of a stock by borrowing a stock and selling it at current market value with the aim of buying it back at a lower price in the future.
GameStop was previously the shortest stock on the market, with 138% of its floating shares in short positions, but the rising share price forced a number of short sellers to close their positions, in some cases with significant losses.
According to FactSet data, the brick-and-mortar video game remains the seventh-shortest inventory, with a short-term interest rate at 39.29% of the company’s fleet.
Here is a list of the other stocks with the shortest short trading on the New York Stock Exchange and Nasdaq Composite.