What is the short interest ratio?
Answer:
short interest is the number of shares of a stock that are currently being 'shorted.' the number of shares shorted divided by the total shares outstanding give you a % of the shares being shorted. also look at 'days to cover' this is short interest divided by the average daily trading volume. knowing if the stock you about to buy has a high short interest ratio is important. you should know what the "bear case" is and reconcile with your view on the stock. sometimes high short interest can be a good contrarian signal, especially if an event starts a short squeeze. hope this helps. Other Questions and Answers: