Definition
The number of a stock's shares that have been sold short and not yet bought back.
The story
FINRA (the Financial Industry Regulatory Authority) publishes short interest figures twice a month. High short interest means many investors are betting on a fall. It also means there are many potential buyers if they have to cover, which is the setup for a short squeeze.
Why markets watch it
Coverage cites short interest when explaining why a stock jumped or fell unusually hard.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms