‘Short’ sales up sharply on NYSE
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Bearish bets on the New York Stock Exchange hit another record high at mid-month.
The number of NYSE shares sold “short” soared to 16 billion as of March 14, up 7% from 14.9 billion on Feb. 29 and up 26% since year-end, the exchange said Thursday.
Traders who sell securities short typically are betting that prices will fall. A short-seller borrows shares and sells them, hoping to buy back the stock at a cheaper price later to repay the lent shares. If the bet is correct, the trader’s profit is the difference between the sale price and the repurchase price.
But if the market rallies instead of falls, heavy short selling can feed the rebound as bearish traders rush to buy to close out their bets.
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