05-08-2021, 02:14 AM
Question: If a portion of a company’s shares are sold short, shouldn’t the marke
<!-- SC_OFF --><div class="md"><p>As a simple example, if a company issues 100 shares but then 20 shares are sold short, technically there are 120 shares out there for the purpose of calculating market cap. </p> <p>My thinking is that short sellers are essentially creating additional shares that regular investors are buying, meaning that there are essentially additional shares floating around in the market. A regular investor doesn’t know if they are buying a regular share or one that has been loaned out to a short seller and then sold back into the market.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Haberd"> /u/Haberd </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/n6y75j/question_if_a_portion_of_a_companys_shares_are/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/n6y75j/question_if_a_portion_of_a_companys_shares_are/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>As a simple example, if a company issues 100 shares but then 20 shares are sold short, technically there are 120 shares out there for the purpose of calculating market cap. </p> <p>My thinking is that short sellers are essentially creating additional shares that regular investors are buying, meaning that there are essentially additional shares floating around in the market. A regular investor doesn’t know if they are buying a regular share or one that has been loaned out to a short seller and then sold back into the market.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Haberd"> /u/Haberd </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/n6y75j/question_if_a_portion_of_a_companys_shares_are/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/n6y75j/question_if_a_portion_of_a_companys_shares_are/">[comments]</a></span>Kind Regards R