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 . Bloomberg Financial Dictionary
The total number of shares of a security sold short. Exchange Handbook Glossary

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short interest ˌshort ˈinterest noun [uncountable] FINANCE
the number of shares which have been sold by people who do not yet own them, in the belief that their price will fall before they have to be delivered. This can be a sign that people expect a company's shares or shares in general to fall:

• The company had one of the largest decreases in short interest last month.

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short interest UK US noun [U] STOCK MARKET, FINANCE
the total number or value of shares sold by people who have borrowed them because they expect to buy them back at a lower price in the future and make a profit from the difference: »

In the month to mid-January, short interest dropped 4.8% to 740.4 million shares from 777.4 million.

Financial and business terms. 2012.

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Look at other dictionaries:

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  • Short interest — This is the total number of shares of a security that investors have borrowed, then sold in the hope that the security will fall in value. An investor then buys back the shares and pockets the difference as profit. The New York Times Financial… …   Financial and business terms

  • short interest — noun : the sum of securities or commodities sold short as of a given date called also short position * * * Finance. the total amount by which a single seller or all sellers are short in a particular stock or commodity or in the market as a whole …   Useful english dictionary

  • short interest — A short sale is the sale of borrowed stock. The seller expects a price decline that would enable him to purchase an equal number of shares later at a lower price for return to the lender. The short interest is the number of shares that haven t… …   Black's law dictionary

  • Short interest ratio — The short ratio (or short interest ratio) is usually the number of shares outstanding of a publicly traded company that is sold short, divided by the average daily trading volume (daily transaction). It can also be the percentage of the free… …   Wikipedia

  • Short Interest Theory — An investment theory that states that the price of a security will eventually have to rise after a period of heavy short selling. The short interest theory has the price increase occurring because investors who sell the security short will have… …   Investment dictionary

  • Short Interest Ratio — A sentiment indicator that is derived by dividing the short interest by the average daily volume for a stock. This indicator is used by both fundamental and technical traders to identify the prevailing sentiment the market has for a specific… …   Investment dictionary

  • short interest — Finance. the total amount by which a single seller or all sellers are short in a particular stock or commodity or in the market as a whole. Also called short account, short position. [1885 90, Amer.] * * * …   Universalium

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