Technicians Consider a High Short Interest Ratio to Be Bearish

question 31

True/False

Technicians consider a high short interest ratio to be bearish.

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Definitions:

Secondary Market

The secondary market is where previously issued securities and financial instruments, such as stocks and bonds, are bought and sold, unlike the primary market where securities are first issued.

Overpriced

A term used to describe securities or assets that are trading above their intrinsic or fair value.

ECNs

Electronic communication networks that facilitate the buying and selling of securities outside traditional stock exchanges.

Transactions Costs

Expenses incurred when buying or selling securities, including broker commissions and spreads.