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Simple English definitions for legal terms

short interest

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A quick definition of short interest:

Short interest refers to the number of shares in a short sale that have not been purchased for return to lenders. In simpler terms, it is when someone sells shares they don't own, hoping to buy them back at a lower price and make a profit. This is usually done when the seller expects the price of the shares to drop. Short interest is important to investors because it can indicate market sentiment and potential price movements.

A more thorough explanation:

Definition: Short interest refers to the number of shares in a short sale that have not been purchased for return to lenders. In a short sale, the seller borrows shares and sells them, hoping to buy them back at a lower price and make a profit. Short interest is the number of shares that have been sold short but not yet bought back.

Example: John believes that the stock of XYZ company will decrease in value. He borrows 100 shares of XYZ from his broker and sells them for $50 each, receiving $5,000. If the stock price drops to $40, John can buy back the 100 shares for $4,000 and return them to his broker, making a profit of $1,000. However, if the stock price increases to $60, John will have to buy back the shares for $6,000, resulting in a loss of $1,000. The number of shares that John has sold short but not yet bought back is the short interest.

Explanation: Short interest is an important metric for investors and traders who want to gauge market sentiment. High short interest indicates that many investors are betting against a stock, which could lead to a short squeeze if the stock price rises unexpectedly. A short squeeze occurs when short sellers are forced to buy back shares to cover their positions, driving up the stock price even further. On the other hand, low short interest suggests that investors are bullish on a stock, which could lead to a rally if positive news emerges.

short-form merger | short lease

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ReminiscentZestyFish
14:18
Aint no way
jackfrost11770
14:19
Wow that's awesome nothing from vandy
GreyCeaselessMammoth
14:19
what
GreyCeaselessMammoth
14:19
fuck
renard99
14:19
@soyalmondoatmilk: Congratulations!!!
jackfrost11770
14:19
I applied in November
jackfrost11770
14:19
Idk when the As did
GreyCeaselessMammoth
14:19
does anyone know if they usually release all at once or waht
nothing
jackfrost11770
14:20
Well I hope not otherwise I'm screwed
jackfrost11770
14:21
Anderson cooper PLEASEEEEE
For ED and their last wave of decisions it was an email all at once
GreyCeaselessMammoth
14:22
ugh
gonna go cry
jackfrost11770
14:22
Ugh
jackfrost11770
14:22
:(
ReminiscentZestyFish
14:23
Small ahh wave
GreyCeaselessMammoth
14:23
yeah the smallness of this wave makes me think there might be more to come? am i being crazy? only one wave a month it should be a tsunami rn
14:24
@jackfrost11770: chillll it still early in the cycle, especially relative to this and last yearrrr
its also still early in the day
i think theres def more waves todayu
StillDoingMyBest
14:25
do y'all think the lsat is easier or harder without the logic games
[] starfishies
14:25
ppl prob need a few minutes to update their results
pee pee poo poo
if i get a decision today ill dye my hair
14:26
dye it grey plz
or ppiece a new whole
i would look terrible with grey hair
jackfrost11770
14:27
I do think that vandy does hella small waves if not even individual decisions
jackfrost11770
14:27
Tex got WL randomly and he was like, the only one
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