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Re: exspresstrader01 post# 280295

Wednesday, 01/18/2023 10:05:39 PM

Wednesday, January 18, 2023 10:05:39 PM

Post# of 353468
That isn't a conclusion... it is a complete misunderstanding of the FINRA Daily Short Report that can be proven with a few minutes of DD!

Let me again explain what the FINRA data means:

These numbers have caused a lot of confusion in the marketplace, mostly from individual investors and some companies who infer high daily short volume numbers mean high short interest. That is not the case, as the source of the numbers is not the same, and there is very little correlation between them. As the FINRA bulletin definitively states, the daily short sale volume data does not—and is not intended to—equate to short interest position information.

The misunderstanding that the daily short volume numbers equals daily short interest has flourished, not only among many investors, but also among many companies and their management, many of which have actually issued news releases and filings with these erroneous claims. This confusion is largely a result of FINRA’s failure to provide, until now, a plain English explanation for those outside the brokerage industry or without market experience what the numbers mean and how they are derived. It has also stoked by certain paid stock promotion services who have intentionally mislead public companies in this belief in order to earn a dollar selling this fictional claim.

This new Information Notice will hopefully dispel this myth and help investors, and company management, better understand how the market works. If anyone, especially management of a public company, doesn’t understand the difference between the short volume and short interest numbers, have them review the FINRA bulletin. Or, better yet, suggest they engage a knowledgeable and professional consultant who can explain the difference, take care of their regulatory requirements accurately, and help management focus more on what is really important to investors – their business.


Read it yourself:

https://www.finra.org/rules-guidance/notices/information-notice-051019


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