How Can a Stock’s Short Interest Exceed 100%?! GameStop (GME) short interest at 139%?

Описание: How can short interest be more than 100? How can short interest be above 100? In January 2021, a short squeeze of the stock of the American video game retailer GameStop (GME) and other heavily shorted securities (i.e. with a high short interest) took place. GameStop's short interest stood at roughly 139% of its available shares at one point. The obvious question here is "How can a stock have more than 100% of its shares shorted?"

In my last video I discussed how short selling works and what Buffett thinks of short selling. I outlined the reversed risk-reward profile of shorting and the risk of a short squeeze. In the comment section of this video one of my viewers asked how a stock can have a short interest of over 100%. At one point, short positions made up an impossible 140% of GameStop’s float, the highest level for any equity worldwide. So in this video, I will explain how in the world a stock’s short interest can exceed 100%, which seems utterly absurd at first.

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My first video on short selling:    • Short Selling Explained: Why Buffett Stopp...   (Short Selling Explained: Why Buffett Stopped Short Selling (GameStop short squeeze as an example))

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Chapters:
0:00 Intro
1:40 How Short Selling Works
2:44 Explanation #1
5:07 Explanation #2
8:40 Can my broker lend out my shares to short sellers?
9:45 What you can do to prevent this?

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