Nasdaq Short Selling: Short-Selling Activity Falls on Nasdaq
Short-selling activity fell on the Nasdaq Stock Market in late March amid hopes Wall Street's credit crisis is nearing an end.</br></br>For the twice-monthly reporting period ended March 31, the number of short-selling positions not yet closed out at Nasdaq -- called short interest -- fell 1.2% to 9,657,092,223, from 9,778,201,744 shares at midmonth.</br></br>Investors who "short" shares borrow and sell them, betting the price will fall and they will be able to buy the shares later at a lower price for return to the lender. In general, the higher the short interest, the more investors expect a downturn. Downdrafts tend to boost the value of short positions.</br></br>The short ratio, or number of days' average volume represented by short positions outstanding at the exchange, rose to 4.5 from 4.2.</br></br>The Wall Street Journal uses average daily composite volume to calculate short ratios.