Yes, a Stock Can Have Short Interest Over 100% -- Here's How
Recent events have thrust the practice of selling a stock short into the spotlight. With companies like GameStop (NYSE: GME) and AMC Entertainment Holdings seeing their shares soar as the result of short squeezes, everyone's getting an education about the dynamics of short-selling and how it actually works.
In this latest short-selling controversy, many investors have been confused by the sheer level of exposure that short-sellers have to certain stocks. For instance, GameStop recently had short interest that exceeded 100% of its available shares. That left many investors completely gobsmacked -- but there's a simple explanation for how situations like the one we're currently in can come about.
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Source Fool.com
