Investors Who Sell Short Expect to Make Money When the Stock

question 12

Essay

Investors who sell short expect to make money when the stock price goes down. How, then, can a high short-interest ratio be considered bullish?

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Definitions:

Instrumental Component

A term used in psychology to refer to aspects of behavior or actions that are goal-oriented and aimed at achieving specific outcomes.

Reciprocal Exchange

A mutual give-and-take process in relationships, where each party provides benefits to the other with the expectation of receiving comparable benefits in return.

Obligations

Duties or commitments that one is bound to by law, promise, or moral responsibility.

Trust

The belief that a person is both honest and benevolent.