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 ?
Beliefs about returns are based on current bond prices [[??].sub.t], the current short rate [i.sub.t], as well as the conditional distribution of the vector [([r.sup.res.sub.[tau]], [i.sub.[tau]], [[pi].sub.[tau]], [[??].sub.[tau]], [[??].sup.+1.sub.[tau]]).sub.[ that is, the return on the residual asset, the short interest rate, the inflation rate and the prices and payoffs on the long spanning bonds.
Short interest rate = 0.7 * (inflation - inflation target)--0.4 * (price level - price level target).
First, low short interest rates and bond yields have encouraged cheap borrowing and enabled private equity specialists to leverage themselves up and to purchase companies on valuations that exploit the difference between money market yields and earnings yields.
The yield curve is the difference between long and short interest rates.
For example, the domestic currency appreciates when the monetary authority increases short interest rates as a response to a positive output gap.
Banco de Mexico's decision to cap short interest rates, the selective impact of soaring commodity prices--most notably oil--and the cautiously favorable scenario predicted for the Mexican economy all support further expansion.
The entire sector was flooded with a 9.6% increase in short interest in the four weeks preceding February 10, followed by a 6.7% increase in the four weeks preceding March 10.
To achieve this objective, the central bank relies on its view of the transmission mechanism of monetary policy--the transmission mechanism that, through several channels, links the central bank's instrument (usually a short interest rate, the instrument rate) and the target variables (inflation and the output gap in the above formulation of the objective for monetary policy).
Short interest reports are compiled monthly by the U.S.
stocks set fire to short-covering in issues whose short interest exceeds the balance of shares bought on margin,'' said Hiroichi Nishi, an analyst at Nikko Cordial Securities Inc.
The big "short interest," or shares shorted in Optimal, has now plummeted.
Swedens Riksbank (1996): "Sweden's Riksbank's management of short interest rates".

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