In your opinion ,do short interest highlights significantly impact the actual prices of stock?

Question

Any input is helpful. Thank you for your time.

guees it was too complicated for yahoo answers.

I know what selling short means.. I just want to know in your opinion if you think the the short interests highlights can really significantly affect the stock market prices. Sorry fo the misunderstanding

Answer 1

short interest "highlights?" not sure which highlights you're referring to. Are you asking about the short interest statistics, or the actual short selling?

short selling was a major contributor to the crash of '29. Now we can sell short stock index futures, which contributed heavily to Black Monday, in October, 1987. So yes, shorting can significantly impact prices.

But when things get too lopsided, e.g., with a very high short interest ratio, then things are ripe for a short squeeze. A few hundred million dollars thrown at the stock can put the short sellers into full flight, and cause a near vertifcal rise in price as the the one-time short-sellers all try to scurry for the door at once and cover their short positions.

Answer 2

I'm not sure if I fully follow your question..... but;

Shorting a stock... (selling it) can certainly bring it down.
People covering shorts will (buying the stock) will certainly effect the stock.... sometimes to the level of a "short squeeze", which may result in a rapid rise (up).