Member Short-Sales Ratio

DEFINITION of 'Member Short-Sales Ratio'

A ratio comparing the number of short sales transacted on behalf of NYSE members to the entire number of short sells transacted on the exchange.

BREAKING DOWN 'Member Short-Sales Ratio'

This ratio is used to gauge and analyze the sentiment of market professionals. By isolating the number of shorts transacted by "pros," investors can remove the unwanted noise of public traders, who may be less informed.

RELATED TERMS
  1. Comparable Transaction

    A method of valuing a company that is for sale. Comparable transactions ...
  2. Transaction Identifier

    A unique identifier assigned by a business to each transaction ...
  3. Short Interest Ratio

    A sentiment indicator that is derived by dividing the short interest ...
  4. Inverse Transaction

    A transaction that can cancel out a forward contract that has ...
  5. Authorization Only

    A type of sale transaction that creates a pending transaction ...
  6. Opening Transaction

    The act of initiating a trade. An opening transaction is the ...
Related Articles
  1. Investing

    Short Interest: What It Tells Us

    This figure can be a real eye-opener about the market sentiment surrounding a given stock.
  2. Markets

    Analyze Investments Quickly With Ratios

    Make informed decisions about your investments with these easy equations.
  3. Trading

    4 Simple Investing Ratios You Need To Know

    Dissecting a company’s financial statements to uncover ways to make money is a challenging endeavor. Here are four ratios that can help.
  4. Investing

    The Basics Of Short Selling

    Short sellers enable the markets to function smoothly by providing liquidity, and also serve as a restraining influence on investors’ over-exuberance.
  5. Trading

    Short Interest: What It Tells Us

    A stock’s short interest is the total number of shares that investors have sold short but have yet to close.
  6. Trading

    Why Short Sales Are Not For Sissies

    Short selling has a number of risks that make it highly unsuitable for the novice investor.
  7. Investing

    Short Selling Analytics

    One issue with data on short selling is that it is not real-time in nature, unlike most other market data. Most major exchanges such as the New York Stock Exchange, Nasdaq, and the Toronto Stock ...
  8. Investing

    What Are Transaction Costs?

    Transaction costs are expenses incurred from buying or selling securities.
  9. Personal Finance

    Purchasing A Short-Sale Property

    If you are looking for a good deal and have time to wait, a short-sale house may be for you.
  10. Investing

    Financial Ratios to Spot Companies Headed for Bankruptcy

    Obtain information about specific financial ratios investors should monitor to get early warnings about companies potentially headed for bankruptcy.
RELATED FAQS
  1. What is the difference between a short position and a short sale?

    Learn how short selling and short positioning are different, specifically in regards to the nature of the commodity being ... Read Answer >>
  2. How do stock dividends affect the retained earnings account?

    Understand the difference between financial ratio analysis and accounting ratio analysis. Learn why ratio analysis is important ... Read Answer >>
  3. How are arm's-length transactions determined by law?

    Determine if transactions are conducted at arm's length by checking if the parties to a contract are independent and transact ... Read Answer >>
  4. Why does my broker allow me to enter only day orders for short selling?

    Put simply, brokerage firms restrict short sales to day orders because of the complexity of the short sale transaction and ... Read Answer >>
  5. What is the put-call ratio and why should I pay attention to it?

    The put-call ratio is a popular tool specifically designed to help individual investors gauge the overall sentiment (mood) ... Read Answer >>
  6. What role does ratio analysis play in valuing a company?

    Learn about the role of ratio analysis in determining company value, including some of the most common ratios used by modern ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center