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What is the typical percent of short sales that an equity can tolerate and why?

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What is the typical percent of short sales that an equity can tolerate and why?

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  1. I'm not sure what you mean by the amount of short sales an equity can tolerate. I guess they can tolerate as much as can be shorted. Shorting begins to stop when no more shares can be borrowed to short or when an equity becomes no longer eligible to short because the price is too low. Keep in mind that a large short position can be bullish long term as shorts eventually have to be covered (bought back). And having to buy shares back will eventually force the price of a equity up. If there's one thing an equity cannot tolerate, it's consistently poor results. That will kill any stock.


  2. There's no such thing as the "typical percentage of short sales that an equity can tolerate"

    Every security is different, they differ by the number of shares outstanding, the number of shares owned by the public, and institutions, they trade in different makets, and trade a different prices.  

    All of these factors enter into or must be considered in the short sale process. So there is not "typical", "average" or "approximation" that can be given.

    Not sure where you were tring to go with this question

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