Article: Why Naked Short Selling Is Not As Prevalent As You Think

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Why Naked Short Selling Is Not As Prevalent As You Think

Wayne Duggan , 07 June 2021

AMC Entertainment Holdings Inc AMC 0.16% jumped another 10% on Monday, and the hashtag #NakedShorting was trended on Twitter in the process.

On Monday’s Benzinga PreMarket Prep, co-host Dennis Dick discussed why the idea that naked short sellers are behind the high short interest in stocks like AMC and GameStop Corp. GME 0.03% is a completely false social media narrative.

“The shorts might get squeezed, but there really isn’t a lot of naked short selling in practice,” Dick said.

He said many AMC and GameStop traders are misinformed about what GameStop’s peak 2021 short interest of around 130% actually means.

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