The cumulative number of shares that have been sold short by investors and not covered is called
A) Margin interest.
B) Short interest.
C) Short ratio.
D) Short/long ratio.
E) Naked short ratio.

Question

The cumulative number of shares that have been sold short by investors and not covered is called
A) Margin interest.
B) Short interest.
C) Short ratio.
D) Short/long ratio.
E) Naked short ratio.

Quizplus · Accepted Answer

Short interest refers to the cumulative number of shares that have been sold short by investors and have not been covered. Margin interest refers to the interest paid by investors for borrowing money to trade securities on margin. Short ratio is the ratio of short interest to the stock’s average daily trading volume, while the short/long ratio is a comparison of the number of shares sold short to the number of shares held by long investors. Naked short ratio refers to the number of shares sold short without actually borrowing them first to cover the short position.

The Cumulative Number of Shares That Have Been Sold Short