I expected a short squeeze as a result of a stock being placed on the Regulation SHO list, but the price is dropping. Any thoughts?
2006-08-14 06:16:07 · 4 answers · asked by John Doe 2 in Business & Finance ➔ Investing
If the short position is large, it is because a lot of people feel that the stock is overvalued. Short squeezes were popular back in the days when you could manipulate stock prices. It is a lot harder to do now. No one wants to squeeze the shorts and then end up owning lots of shares of an overvalued company.
Asquith and Meulbroek (1996) wrote an academic article that shows that stock performance is indirectly related to the level of shares that are shorted. On average, the more shares that are shorted, the worse the company will do.
2006-08-14 07:50:12 · answer #1 · answered by Ranto 7 · 0⤊ 0⤋
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2006-08-14 17:28:39 · answer #2 · answered by stock_trade_expert 3 · 0⤊ 0⤋
The only thought I have is, IT'S THE STOCK MARKET... and if I've learned anything it's that you never really know what it's going to do.
2006-08-14 07:42:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
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2006-08-14 07:00:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋