Short Interest Theory

What Does Short Interest Theory Mean?
The theory that a large short interest is the predecessor of a rise in the price of a stock.

Investopedia explains Short Interest Theory
The reasoning behind this is that the short positions must eventually be covered, which means that there will be more purchasers of the stock who in turn drive the price up.

Related Terms

Days To Cover
Short
Short Covering
Short Interest
Short Interest Ratio
Short Selling
Short Squeeze
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Related Links

Short Interest: What It Tells Us - Find out how this figure can be a real eye-opener on market sentiment of a given stock.
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