Regarding the short-interest ratio,
A)it measures the number of shares sold each day
B)it may be used to forecast subsequent movements in the price of a stock
C)an increase in the ratio suggests short sellers expect the price of the stock to rise
D)a reduction in the ratio may be interpreted that stock prices will be stable

Question

Quizplus · Accepted Answer

The short-interest ratio is a measure used by investors to predict potential movements in a stock's price, based on the idea that a high ratio might indicate a future price increase due to short sellers covering their positions.

Regarding the Short-Interest Ratio