The Short-Interest Ratio

question 61

Multiple Choice

The short-interest ratio

• A) measures the number of shares sold each day
• B) may be used to forecast subsequent movements in the price of a stock
• C) an increase in the ratio suggests short sellers expect the price of the stock to rise
• D) a reduction in the ratio may be interpreted that stock prices will be stable

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Definitions:

Overland

Transportation or travel across land, often referring to trade routes or journeys that avoid sea or air transit.

Beta

A measure of the volatility, or systematic risk, of a security or a portfolio compared to the market as a whole.

Dividend

A portion of a company's earnings that is distributed to shareholders, usually on a regular basis.

Beta

A standard for evaluating how the systematic risk or volatility of a security or portfolio stands in relation to the entire market.