Short Interest

Category: finance

The total number of shares that have been sold short but not yet covered.

Short interest is a "bearish signal." It shows how many people are betting against the stock. High short interest can lead to a short squeeze, but it also shows deep skepticism about the stock’s future performance.

Common Examples

• A surge in short interest often precedes a period of heightened volatility as the market debates the stock’s fundamental value.
• Institutional firms track short interest to gauge market sentiment and identify stocks prone to violent swings.