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Glossary · Stock basics

Short interest

The number of shares sold short, betting the price will fall, usually shown as a percentage of the shares that trade.

Why it matters

High short interest shows skepticism. It can also fuel sharp rallies when short sellers rush to buy back (a short squeeze).

How to read it

Under 3% is normal for large companies; over 10% is high. Cluenex compares it with all shares; against only the shares that trade freely (the float) it reads a little higher. Days to cover says how long buybacks would take at normal volume. FINRA publishes it twice a month, about a week after each settlement date.

Also called: days to cover, short squeeze

Related

Institutional holdersFunds, pension plans and asset managers that own a company’s shares, from their quarterly 13F filings.

In the Cluenex app, this explanation opens next to every short interest figure, with the live reading for the stock you are looking at. Open it in Cluenex