They are the most hated stocks on Wall Street.
On a monthly basis, exchanges release "short interest" data, revealing the companies that have the largest bets being placed against their success by hedge funds and other speculators.
In order to "short" a stock, one must borrow shares of an equity from a bank and sell them, in the hopes of buying back those shares at a lower price and returning them to the bank. The investor profits from the difference in price at which they sold the borrowed shares and the lower price at which they bought them back.
Short interest reflects the amount of shares out there currently being sold short. Research firms, such as Bespoke Investment Group, will often compare that amount relative to the total shares in the company available for trading. This way, you can truly find the most hated stocks on Wall Street.
