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Finance Dictionary and Glossary of Investment Terms
short interest ratio
Definition 1.
Short interest divided by average daily volume over some period, usually 30 days. Some investors believe that a high ratio is a bullish indicator, and a low ratio is a bearish indicator.
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Definition 2.
Shares sold short divided by average daily volume. This ""days to cover"" ratio represents the number of days of average trading needed to cover short positions in a given stock. This ratio is especially worth investigating if you are considering a short sale. When too many shares of a given stock have been sold short and days to cover stretches past 8 or 10 days, covering your position could prove difficult.
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Definition 3.
A sentiment indicator that is derived by dividing the short interest by the average daily volume for a stock.
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