Short Interest
Number of shares currently sold short by investors.
Definition
Short interest represents the total number of shares that have been sold short and not yet covered or closed out. The short interest ratio (days to cover) divides short interest by average daily volume to estimate how many days it would take all short sellers to cover their positions.
Why It Matters
High short interest can signal widespread bearish sentiment, but can also lead to short squeezes if the stock price rises sharply. For bank stocks, elevated short interest often precedes credit quality concerns or regulatory issues.