How can short interest be more than 100? How can short interest be above 100? In January 2021, a short squeeze of the stock of the American video game retailer GameStop (GME) and other heavily shorted securities (i.e. with a high short interest) took place. GameStop's short interest stood at roughly 139% of its available shares at one point. The obvious question here is "How can a stock have more than 100% of its shares shorted?"

In my last video I discussed how short selling works and what Buffett thinks of short selling. I outlined the reversed risk-reward profile of shorting and the risk of a short squeeze. In the comment section of this video one of my viewers asked how a stock can have a short interest of over 100%. At one point, short positions made up an impossible 140% of GameStop’s float, the highest level for any equity worldwide. So in this video, I will explain how in the world a stock’s short interest can exceed 100%, which seems utterly absurd at first.

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My first video on short selling: [ Ссылка ] (Short Selling Explained: Why Buffett Stopped Short Selling (GameStop short squeeze as an example))

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Music: PPB: High [NCS Music Without Limitations]
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Music: Not For Nothing - Otis McDonald [ Ссылка ]

Chapters:
0:00 Intro
1:40 How Short Selling Works
2:44 Explanation #1
5:07 Explanation #2
8:40 Can my broker lend out my shares to short sellers?
9:45 What you can do to prevent this?

DISCLAIMER
The content provided on this channel should be considered an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. The stocks and funds discussed on this channel are examples only and may not be appropriate for your individual circumstances.

Before making any financial or investment decisions, I recommend you consult a financial planner or advisor to take into account your personal investment objectives, financial situation, and individual needs.

In no event shall René Sellmann be liable to any viewer for any damages of any kind arising out of the use of any content published on this channel, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages.

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