Short Interest Ratio

(redirected from Short Interest Ratios)

Short Interest Ratio

In technical analysis and fundamental analysis, a ratio of the short-sold shares of a publicly traded company to the trading volume over a given period of time. This is an indication of the market's sentiment regarding a particular stock. A higher ratio indicates a feeling that the stock will decline in value, while a lower ratio indicates general belief that it will rise. It is not an exact indication, as it fails to take into account matters such as the potential exercise of convertible shares. Fundamental analysts interpret a high ratio as bearish because it shows an expectation for lower prices; on the other hand, technical analysts see a middling ratio as bullish as it may indicate a demand for a stock among hedge funds unable to cover a short sale. The short interest ratio is also called days to cover. See also: Hedge fund.
References in periodicals archive ?
In addition to reflecting daily short interest ratios on the New York Stock Exchange and Nasdaq markets, SunGard's Securities Borrow Indices (SBI) also cover the Standard & Poor's 500, 400 and 600 indices and their value- and growth-style components.
The report helps clients identify industries with high short interest ratios and highlights significant changes in short selling.
Over the last several months, SunGard's Securities Borrow Indices have been used to consistently predict both the direction and degree of change of the Nasdaq and NYSE short interest ratios, in advance of the monthly release of the official figures.

Full browser ?