Topic: How To Invest

Dear Pat: I was just looking at the Toronto Stock Exchange web site, and clicked on the 20 top short positions link. I own three of the shares that are listed there. Should I sell them?

Article Excerpt

A high short position is no longer a particularly telling stock-market indicator. That’s because traders and hedge funds often combine a short sale with some other transaction in stock options or stock futures. Rather than having to buy the stock back in the market, for instance, short sellers may hold call options that they can exercise; that way, they buy the stock from the option seller, not in the open market. The short sale may say more about options trading than it does about the company’s fundamentals. fundamentals…