Avitar, Inc. (AVTI)

[k_trader]

Short Interest is the total number of shares of a security that have been sold short by customers and securities firms that have not been repurchased to settle short positions in the market.

Short selling is the selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short selling is a legitimate trading strategy. Short sellers assume the risk that they will be able to buy the stock at a more favorable price than the price at which they sold short.

Short Interest Reporting Requirements

Effective July 2006, FINRA Rule 3360 was amended to expand short interest reporting requirements to OTC Equity Securities in all customer and proprietary firm accounts. OTC equity securities are defined as any equity security that is not listed on The NASDAQ Stock Market or a national securities exchange and includes Pink Sheet quoted securities. Short interest reports must be made as of the settlement date designated by FINRA.

Effective September 7, 2007, Rule 3360 was changed to require firms to increase the frequency of short interest reporting from monthly to semi-monthly cycles. The mid-month short interest report is based on short positions held by members on the settlement date of the 15th of each month. If the 15th falls on a weekend or another non-settlement date, the designated settlement date will be the previous business day on which transactions settled. The end-of-month short interest report is based on short positions held on the last business day of the month on which transactions settle.

After review by FINRA, the short interest data is consolidated by security and disseminated to the public, generally on the eighth business day after the reporting settlement date. See Short Interest Publication Schedule.

The first short interest information for OTC securities was available on July 26, 2006. Short interest information for prior months is not available. Each reporting period, on the publication date, Pink OTC Markets will publish short interest information for each OTC equity stock on www.otcmarkets.com.

http://www.otcmarkets.com/marketactivity/short_interest.jsp