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Short Trading Activities and the Price of Equities: Some Simulation and Regression Results**

Thomas H. Mayor

Journal of Financial and Quantitative Analysis · 1968 · Volume 3 · Issue 3

DOI: 10.2307/2329814

Abstract

Many Wall Street financial analysts believe that a positive relationship exists between the level of short interest in equities and subsequent movements in the prices of these equities. This view is apparently grounded in the belief that short traders will push prices up in the future as they attempt to cover their short positions.

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