How do short sellers affect the stock price? and Photograph of Socks the Cat Sitting next to a Christmas Stocking Embroidered with the Name Socks: 12/21/1993

How do short sellers affect the stock price?

If everyone short sells a stock that has received terrible news, how would that affect the stock price? Why would anyone choose to buy a stock that has received terrible news?


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Answer by Tulip
If a stock has terrible news, the SEC etc will ban or not allow short sales of the stock after the news. Also, there is a tick up rule that means the stock has to tick up before it can be shorted. If the stock doesn't go up when you borrow it, you cannot sell it because of no up tick. Therefore you could not short it, since you have no sell price to short from.

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Photograph of Socks the Cat Sitting next to a Christmas Stocking Embroidered with the Name Socks: 12/21/1993


Image by The U.S. National Archives
Title: Photograph of Socks the Cat Sitting next to a Christmas Stocking Embroidered with the Name Socks: 12/21/1993

Creator: President (1993-2001 : Clinton). White House Photograph Office. (01/20/1993 - 01/20/2001)

Types of Archival Materials: Photographs and other Graphic Materials

Contacts: William J. Clinton Library (NLWJC), 1200 President Clinton Avenue, Little Rock, AR 72201. Phone: 501-244-2877; Fax: 501-244-2881; Email: clinton.library@nara.gov

Production Dates: 12/21/1993

From: Series: Photographs Relating to the Clinton Administration, compiled 01/20/1993 - 01/20/2001
Collection WJC-WHPO: Photographs of the White House Photograph Office (Clinton Administration), 01/20/1993 - 01/20/2001

Persistent URL: arcweb.archives.gov/arc/action/ExternalIdSearch?id=6036912

Access Restriction(s): Unrestricted

Use Restriction(s): Unrestricted

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