Short Interest

Short interest is the total number of shares that investors have borrowed and sold, betting the stock price will fall. You'll hear about it when reading market news or analyzing stocks, because high short interest can signal investor skepticism—or create dramatic price swings if the stock rallies unexpectedly. When short sellers are forced to buy back shares to return them, it can trigger a "short squeeze," pushing prices up fast. For example, if TechCorp has 5 million shares shorted and suddenly jumps 20%, those short sellers might panic-buy to cut losses, driving the price even higher. Tracking short interest helps you understand what professional investors think about a stock's future.