Which of the following is a characteristic of the short interest ratio: It is:
A)calculated daily as well as weekly.
B)often interpreted without any additional information.
C)between 2 and 3 in recent times.
D)considered to be a measure of investor sentiment.

Question

Quizplus · Accepted Answer

The short interest ratio is considered to be a measure of investor sentiment. It represents the number of shares sold short (betting on a stock to decline in value) divided by the average daily trading volume. A high short interest ratio indicates that investors are bearish on a stock, while a low ratio indicates bullish sentiment. It is not calculated daily, often requires additional information such as the float, and can vary widely depending on the stock and market conditions, so choice A, B and C are incorrect.

Which of the Following Is a Characteristic of the Short