Thoughts and Observations on Turkish Economy and financial markets. Turkiye Ekonomisi, Borsa, Dolar, Altin, Faiz, Teknik Analiz, Grafik, Hisse Senetleri...

Friday, September 27, 2013

The 5 Most Shorted Stocks in the S&P 500 Index

Ever wonder what are the most shorted stocks in the S&P index? Insider Monkey wrote about "The 5 Most Shorted Stocks in the S&P 500 Index".

Short selling activity is a criterion that is not so often taken into consideration in the investment world. However, even though short-sellers can not be considered market makers, their activity may have a point, and it may show that a decline in price is not far away. For some stocks, which have a high short percentage of float (tradable shares), the price can climb as shorters are covering their positions.

An increased demand together with a reduced supply of shares, forces individuals, who hold short positions, to buy shares while the price increases rapidly, a situation known as a "short squeeze." In a "short squeeze" speculators can earn good money by capturing short-term price movements. We would like to present five of the most massively shorted stocks in the S&P 500 Index. These companies have experienced the highest level of short trading as a percentage of float. Make a visit on the website of Insider Monkey for more details on the  most shorted stocks in the S&P 500 index.