
Short interest
Short interest refers to the total number of shares of a stock that investors have sold short but not yet covered or closed out. Selling short involves borrowing shares to sell them, hoping their price will decline so they can buy them back cheaper and make a profit. High short interest indicates many investors expect the stock’s price to fall, which can also signal potential for a short squeeze if the price unexpectedly rises. It’s a useful indicator of market sentiment and potential volatility around a particular stock.