Important News Releases for Short Sellers
February 4, 2010 - Short Selling
How do short sellers gain an informational advantage over other traders? On what news do they focus? Do they anticipate or react to news? In their January 2010 paper entitled “How are Shorts Informed? Short Sellers, News, and Information Processing”, Joseph Engelberg, Adam Reed and Matthew Ringgenberg combine detailed data on short selling with data on news releases to investigate how short sellers use news. Using detailed information on short sales (daily short volume divided by total volume) for a broad sample of stocks and relevant news releases spanning January 3, 2005 through July 6, 2007, they conclude that: Keep Reading