Replies to post #94340 on Marani Brands Inc. (MRIB)

[Matthew Berg]

Quote:
Short interest is the total number of shares of a particular stock that have been sold short by investors but have not yet been covered or closed out.
That's not what short interest is at all. What you described is "failure to deliver" numbers. A short borrows stock to sell and as such, delivers that borrowed stock to the buyer. The borrowed stock is the short interest.

Investing 101

No, it is not investing 101. It's wrong. By regulation even if the shares are available and you have a buyer and a seller for a trade, but it goes through a third party like a MM it must be initially marked as a short sale and hence becomes part of short interest until the shares are delivered and the trade settled. Failure to deliver is part of short interest but in this case it's not failure to deliver but yet to be delivered, pending settlement and by regulation must remain marked a short interest. It certainly does not represent a naked short sale.