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 ?
What's more, short interest continues to roll over from its recent multi-year high.
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.
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.
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.
Additionally, short interest is lackluster on MHP shares, representing less than one percent of the stock's float and equaling a short-interest ratio of 1.
As a result of discussions with NASD, the Company wishes to state its position on NASD'S monthly short interest reports, which for the first time, are being compiled for over-the-counter stocks like Wataire Industries Inc.
Short interest, meanwhile, is negligible and offers little in the way of support or rally fuel.
And short interest is considerable, accounting for more than nine percent of the stock's total float.
I also see that short interest increased by a hefty 70 percent last month, and almost 20 percent of the stock's float is sold short as the equities crowd bets that the stock is due for a drop.

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