A High Amount of Short Interest Is Typically Considered as a ________

question 14

Multiple Choice

A high amount of short interest is typically considered as a ________ signal, and contrarians may consider it as a ________ signal.

• A) bearish; bullish
• B) bullish; bearish
• C) bearish; false
• D) bullish; false

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Definitions:

Black Sea

A large body of water situated between Eastern Europe and Western Asia, known for its strategic importance and rich history.

Financial Innovation

The creation or improvement of financial products, services, or processes.

Commodity Traders

Individuals or entities that buy and sell physical or financial commodities, aiming to profit from price fluctuations.

Bid-ask Spreads

The variation between the top price a buyer intends to pay (bid) and the bottom price a seller is prepared to take (ask) for an asset.