BALTIMORE (Stockpickr) -- When most investors think of short-sellers, visions often come to mind of traders betting against small, shaky companies. After all, smaller companies tend to be less financially mature, and with fewer eyes on them, they also tend to have greater levels of investor uncertainty.
But what happens when short sellers pile into the large-cap stocks?
In general, large-cap stocks (usually defined as those with a market capitalization of $10 billion or more) are the most well-established companies in an investor's portfolio. They're the ones with plenty of analyst coverage and the ones that often pay dividend income out to investors. But even blue-chips can become the target of short-sellers when faced with major economic headwinds, flawed financials or another catalyst that could send shares lower.
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