The short interest ratio is found by dividing the number of shares sold short by the average:
A) number of shares outstanding in the market.
B) daily volume of trading on the exchange.
C) number of stocks reaching new lows.
D) daily number of stocks bought long.

Question

Quizplus · Accepted Answer

The short interest ratio is calculated by dividing the number of shares sold short by the average daily trading volume, which indicates how many days it would take for short sellers to cover their positions.

The Short Interest Ratio Is Found by Dividing the Number