Traders Who Sell Short Stocks Are Well-Informed

The term “short selling” refers to the practice of selling shares the seller does not own, in the hope of repurchasing them later at a lower price. A new study in The Journal of Finance reveals that there is a large occurrence of shorting activity and that short sellers are highly informed about the relative value of stocks.

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<p><a href="http://www.physorg.com/news126452882.html">Traders Who Sell Short Stocks Are Well-Informed</a></p> <p>The term “short selling” refers to the practice of selling shares the seller does not own, in the hope of repurchasing them later at a lower price. A new study in <i>The Journal of Finance</i> reveals that there is a large occurrence of shorting activity and that short sellers are highly informed about the relative value of stocks.</p>