9

the inst. own is 199%

Why it's larger than 100%? What is the meaning of this number?

Thanks,

Improve this question
1
  • 1
    The most obvious answer would be that the data publisher messed up. That happens all the time. It would be easier to find out for sure if you told us what company it is...
    – jjanes
    Sep 6, 2014 at 22:31

1 Answer 1

Reset to default
10

This can occur due to discrepancies in institutional reporting.

Let's say that XYZ Company has 20 million shares outstanding and Institution A owns all 20 million. In a shorting transaction, Institution B borrows 5 million of these shares from Institution A and sells them to Institution C. If both A and C claim ownership of the shares shorted by B, the institutional ownership of XYZ could be reported as 25 million shares (20 + 5), or 125% (25/20)

Regardless, a reported institutional owernship percentage of above 100 is very likely to have a extremely high rate of actual institutional ownership.

Source: Investopedia

Improve this answer
3
  • Thanks for the answer. Just wondering, does this indicate that the company is/gonna be somehow in a relatively good situation?
    – AGamePlayer
    Sep 8, 2014 at 0:16
  • 3
    I wouldn't say this is a reporting discrepancy as much as it is an artifact of short sales.
    – user12515
    Nov 18, 2016 at 19:24
  • It's a shame this site is for personal finance, because this leads to a follow-on question of what the implications are, in the above example, if Institution A itself winds up owning more than 100% of the company.
    – user12515
    Nov 18, 2016 at 19:28

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.