What Does Short Interest Mean?

Answer:
Short selling is an investment technique utilized by


some investors. Short interest is the total number of shares of a security that an investor or investing firm has sold short which have not been covered or closed out.


Short interest can be expressed in numbers, but is most often expressed as a percentage. Most stock exchanges track short interest data and publish the information twice a month. The information in these reports assists investors in reviewing market sentiment surrounding a particular stock.

Short-interest ratio is the short interest divided by the average daily volume. This is also known as “days-to-cover ratio” because it shows how many days it will take investors who short sell to cover or close out their positions if encouraging information about a security increases the price.

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