An increasing short interest ratio on a stock (a technical indicator) forecasts _____ stock price levels because it reflects added _____ for shares.
A) higher; supply
B) lower; demand
C) higher; demand
D) lower; supply

Question

Quizplus · Accepted Answer

An increasing short interest ratio indicates that more investors are betting that the stock price will fall, which can lead to a short squeeze if the stock price instead begins to rise. This creates additional demand for the stock as short sellers buy shares to cover their positions, potentially driving the price higher.

An Increasing Short Interest Ratio on a Stock (A Technical