The short interest ratio is the ratio between the number of shares sold short and not covered,and the A) Average number of stocks reaching new highs. B) Average daily number of stocks that increased in value. C) Average daily volume of trading on the exchange. D) Average monthly volume of trading on the exchange. E) Average number of shares outstanding in those stocks.

Question

Quizplus · Accepted Answer

The short interest ratio is a measure of how many investors are betting against a particular stock. It is calculated by dividing the total number of shares sold short by the average daily volume of trading on the exchange. This means that only option C, the average daily volume of trading on the exchange, accurately fits the criteria for the denominator in this ratio. The other options do not make sense in the context of calculating the short interest ratio.

The Short Interest Ratio Is the Ratio Between the Number