Short float is a percentage figure that indicates how much of a company’s freely tradable shares (the float) is currently held by short sellers — investors who are betting that the stock price will decline.
Short float = the proportion of shares that investors have borrowed and sold because they believe they can buy them back later at a lower price.
Why Short Float?
Our strategy is focused on anticipating stock price growth. Therefore, we prioritize companies with a low short float, as this suggests that the market has confidence in the company and is not betting on a price decline.
Conversely, a high short float indicates that a significant number of investors expect the stock to fall and lack trust in the company’s outlook. Such stocks represent higher risk and do not align with our investment strategy.
Answers and Score
| ANSWER | SCORE | PRIORITY |
| Low (under 2%) | 10 | 1,1 |
| Medium (2%-5%) | 7 | 1,1 |
| High (5%-20%) | 4 | 1,1 |
| Very high (over 20%) | 2 | 1,1 |
Where to find short float?
You can find the value, for example, on finviz.com.
This question is part of this analyzer.
| Decameron Stock Analyzer – Swing trading, v.1.0 | open analyzer |
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