NEW YORK (
Bank of America
saw a big surge in short interest in the second half of September, according to New Short Stock Exchange
released late Monday and published by
Short interest outstanding of Bank of America jumped to 153 million shares from 128 million during the first half of the month. The 19.9% increase was the fourth-largest among NYSE stocks, behind
Chimera Investment Corp.
, according to
Short sellers borrow shares in the hope of buying them at a lower price in the future and pocketing the difference. Short interest reflects the amount of shares being borrowed by short-sellers, and is one way of measuring bearing sentiment on a stock.
Bank of America is also the third largest short position on the NYSE, behind
Bank of America, which has been one of the weaker performers among large financial stocks since it released second quarter earnings in July, has grabbed headlines lately due to a decision, announced Friday, to halt foreclosures throughout the U.S. pending a review of its business practices.
Written by Dan Freed in New York
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.