Does direct register share on gme impact on short interest?
7/31/2025 12:10am
**Direct registration of shares can impact short interest in several ways**:
1. **Reduced float and increased borrowing difficulty**: When shares are registered directly with Computershare, the number of shares available for trading on the open market decreases, which is known as reducing the "float." This reduction in available shares makes it more difficult and expensive for short sellers to borrow shares to sell short.
2. **Pressure on short sellers**: With fewer shares available, short sellers may face increased pressure to buy back shares to cover their positions, especially if the price of the stock starts to rise. This buying pressure can drive the price up further, potentially leading to a "short squeeze".
3. **Uncovering hidden shorts**: Direct registration can reveal hidden short positions, including those within swaps, by making it more difficult for investors to lend shares to short sellers.
4. **Impact on short interest ratios**: The short interest ratio, which is the number of shares sold short divided by the average daily trading volume, can be affected by direct registration. A higher short interest ratio indicates more bearish sentiment, but the impact of direct registration on this ratio is complex and depends on various factors.
In summary, direct registration of shares can reduce short interest by making it more difficult for short sellers to borrow shares and by increasing the likelihood of a short squeeze when the price rises. However, it may also uncover hidden short positions, and its impact on short interest ratios is multifaceted.