Quote:
Originally Posted by blkgsr
can you dumb this down for me?
- the number of shorted shares has decresed?
- the interest they're having to pay on shorted shares in decreased?
sounds like both of these is in the hedge funds favor somewhat reducing the WSB "power"
is the same happening for AMC? I just hoping everyone jumps out of GME and into AMC
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Yes, the number of shares short has decreased dramatically. Brokers charge an interest rate for you to borrow shares to short-sell since shorting means you are selling a stock you don't own, therefore you need to borrow one to sell. The higher the market demand to short, indicated by short interest as % of shares floating, the higher the interest rate charged by brokers. Prior to this week, GME had an insane amount of short so the cost to maintain a short position was high on top of the price rally that was hurting the shorts. You are correct in your conclusion. Whoever is short GME now (I don't know if they are hedge funds), has a longer investment time horizon for their short positions to come to fruition. Those who are long, are now betting more on the fundamental business or the continued wsb frenzy rather than a short squeeze play.
I am not sure what is happening with AMC. The data on short interest etc. are proprietary and sold by trading analytic companies.