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The short - interest ratio is defined as the total number of shares shorted by investors divided by the total number of shares outstanding (
The shortinterest ratio is defined as the total number of shares shorted by investors divided by the total number of shares outstanding ie "the float" Regarding the shortinterest ratio,
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it measures the number of shares sold each day
it may be used to forecast subsequent movements in the price of a stock
an increase in the ratio suggests short sellers expect the price of the stock to rise
a reduction in the ratio indicates that short sellers continue to sell
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