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To: Alomex who wrote (18514)9/25/1998 2:41:00 PM
From: RX4PROFIT  Respond to of 213181
 
Jonathan, from todays WSJ Interactive:

<Traders who sell securities "short" borrow shares and then sell them,
betting they can profit by buying the stock back later at lower prices.>

<Short interest is the number of shares that haven't been repurchased for return to lenders. As such, it is often taken as an indicator of the degree of negative sentiment among investors in the stocks. Investors may rely on short selling for other purposes, including as a hedging strategy related to corporate mergers and acquisitions, for convertible securities and options, and for tax purposes.>

Hope this helps.

Source: <http://interactive.wsj.com/articles/SB906672319710814500.htm>
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"Why would an option holder want to use a short as a hedge, as opposed to say buying a call option that was less in the money, or buying a put as a hedge instead?"