Which of the Following Statements Regarding the Short Interest Ratio

question 76

Multiple Choice

Which of the following statements regarding the short interest ratio is true?

• A) It is derived as total shares sold short divided by total shares outstanding.
• B) It indicates the dollar amount needed to cover all short positions.
• C) The higher the ratio, the more bullish investors are.
• D) It is derived as number of shares sold short divided by average trading volume.

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Definitions:

Cash and Carry

A type of trade where goods are paid for in full at the time of purchase and taken away by the buyer immediately.

Wholesalers

Businesses that sell goods in large quantities to retailers, other merchants, or industrial, commercial, and institutional users.

Office Supplies

Various commonly used items in offices for daily operations, including pens, paper, staplers, and more.

Wholly Owned

Refers to a business entity where 100% of the shares are owned by a single parent company.