Replies to post #24882 on Zhong Nong Yuan Fang Holdings Inc (ANAS)

[samsamsamiam]

Oh really - YES

Please understand what that report really is - it has NOTHING to do with the actual short INTEREST. it represents the way a trade is marked.

The sooner people understand this the sooner all this nonsense about shorts will stop. I ain't holding my breath though.

From poster BigBake who is quite knowledgeable about what that report means:
Unaware "investors" typically cannot interpret trade reports correctly, Short Volume is not the same thing as Short Interest or Fails to Deliver. Short Volume is simply identifying ownership of the shares in the transaction. Short Volume may contain Short Interest and that Short Interest is disclosed in the Bi Monthly Short Interest report provided by FINRA.

Short Volume is in fact meaningless and this has even been stated by FINRA to the SEC, citing that Riskless Principle transactions are the primary cause of Short Volume in the OTC. FINRA has the data and the systems currently in place to provide a detailed report breaking out Short Interest, Riskless Principle and Block Position sales on a daily basis. Such a report would have much more meaningful data and actual cause and effect could potentially be made from it.


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It has been explained ad nauseum for years and for some reason many refuse to understand the meaning of those numbers - another example:

patchman Member Level
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Tuesday, December 14, 2010 8:01:51 AM
Re: fourkids_9pets post# 344 Post # of 380



I saw that you tried to equate this to massive naked short selling and used short sale volume as a metric highlighting your case. Have you revealed to your readers that short sale volume has nothing to do with actual short sales but can and do, for teh most part, represent long sales routed thru market makers and executed as a riskless principle trade?

I believe, and feel free to prove me wrong, that nearly 100% of all companies that trade thru market makers will see similar short sale volume numbers. It is not because they are all shorted but because of how a trade is marked.

Informed investors are educated investors.