Short interest

Short interest

Total number of shares of a security that investors have sold short and that have not been repurchased to close out the short position. Usually, investors sell short to profit from price declines. As a result, the short interest is often an indicator of the amount of pessimism in the market about a particular security, although there are other reasons to short that are not related to pessimism. For example, hedging strategies for mergers and acquisition as well as derivative positions may involve short sales.

Short Interest

The number of shares of a security that have been short sold, expressed as a percentage of the shares outstanding. Short selling is the sale of borrowed securities; those who engage in it must buy the same security soon thereafter in order to repay them. Some analysts thus believe that a high percentage of short interest is an indication that demand to buy a security will rise in the short-term.

short interest

The number of shares of a particular stock that have been sold but have not yet been repurchased. Many analysts consider a large short position in a given stock bullish, because it represents future demand for the security as purchases are made to replace borrowed certificates. See also cushion theory.

Short interest.

Short interest is the total number of shares of a particular stock that investors have sold short in anticipation of a decline in the share price and have not yet repurchased.

Short interest is often considered an indicator of pessimism in the market and a sign that prices will decline.

However, some analysts see short interest as a positive sign, pointing out that short sales have to be covered, and that the need to repurchase can trigger increased demand and therefore higher prices.

References in periodicals archive ?
21 /PRNewswire/ -- American Stock Exchange members and member organizations today reported short interest of 111,215,375 shares as of the December 15, 1994, settlement date, a decrease of 1,478,622 shares from the 112,693,997 shares (adjusted) reported in mid- November.
21 /PRNewswire/ -- American Stock Exchange members and member organizations today reported short interest of 113,569,317 shares as of the November 15, 1994, settlement date, a decrease of 6,155,099 shares from the 119,724,416 shares reported in mid-October.
What's more, short interest continues to roll over from its recent multi-year high.
20 /PRNewswire/ -- American Stock Exchange members and member organizations today reported a record short interest of 121,071,903 shares as of the October 14, 1994, settlement date, an increase of 10,838,547 shares from the 110,233,356 shares reported in mid-September.
21 /PRNewswire/ -- American Stock Exchange members and member organizations today reported a short interest of 110,158,495 shares as of the September 15, 1994, settlement date, a increase of 3,472,294 shares from the 106,686,201 (adjusted) shares reported in mid- August.
While short interest on the stock faded by more than seven percent this month to just under nine million shares, more than 27 percent of the company's available float remains sold short.
NEW YORK, July 21 /PRNewswire/ -- American Stock Exchange members and member organizations today reported a short interest of 107,572,005 shares as of the July 15, 1994, settlement date, a decrease of 3,170,606 shares from the 110,742,611 (adjusted) shares reported in mid-June.
If the stock continues to display solid price action but still boasts a hefty short-interest ratio, declining short interest indicates that the bears are beginning to head toward the exits but a significant number of shorted shares remains.
NEW YORK, June 21 /PRNewswire/ -- American Stock Exchange members and member organizations today reported a short interest of 110,750,931 shares as of the June 15, 1994, settlement date, a decrease of 3,031,009 shares from the 113,781,940 (adjusted) shares reported in mid-May.
Recall that, as contrarians, we can view a heavy backdrop of short interest bullishly, as it could represent future buying power.
However, short interest on DIS has risen in tandem with the shares, so maybe there is hope over the intermediate term.

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