What is a short interest?
Short interested is the money charged for short loans. Usually when an investor makes a short sale as in sells stock which he hasn’t paid for yet there’s an interest charged. The higher this interest rate is the more likely that the prices will fall. This is a sign of weakness in the market. Though other analysts say that this can still be considered as a positive sign proving that short sales have to be covered and that the need of the repurchase could amplify the demand of the stock in question and this means the chance of increasing the prices. |