Someone I know asked FINRA about the daily short volume and here's the answer. You and others are welcome to confirm it. If you want to know whom to contact, just let me know.
I'm seeing the following posted daily on many stocks. Please clarify what this data is actually saying since I don't believe that 32% of the volume was actual short sales. This data appears to be used to scare investors into believing specific stocks have serious shorting issues.
FINRA short sales of IPIX
32% of today's volume was short sales!
Thank you for your help.
Dear Ms. xxxxxxx,
Thank you for contacting FINRA’s Office of the Ombudsman. Regarding your question, it would be incorrect to assume that short sales comprise 32% of the total volume on that trading day for IPIX. FINRA publishes the daily short sale volume pursuant to an SEC mandate; however, there are various trading anomalies that result in the reported short sale volume often being exaggerated. Thus, the true total short sales volume may be significantly lower than the volume that is reported. Third parties sometimes ignore this and try to claim the ratio is valid to further their own objectives.
It is a bit complex to explain via email. If you would like to discuss it, please call me and I can explain further.
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