Asked by Antoine Miquel on Jul 05, 2024

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A high amount of short interest is typically considered as a ________ signal, and contrarians may consider it as a ________ signal.

A) bearish; bullish
B) bullish; bearish
C) bearish; false
D) bullish; false

Short Interest

The total number of shares of a particular stock that have been sold short by investors but have not yet been covered or closed out.

Bearish Signal

An indication in financial markets suggesting that the price of an asset may decline.

Bullish Signal

An indicator that suggests an asset’s price is likely to rise. These signals are perceived through various forms of market analysis, including technical indicators and trends.

  • Discover and apprehend the assorted sentiment indicators along with their connotations.
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GS
Gurjeet SinghJul 10, 2024
Final Answer :
A
Explanation :
A high amount of short interest is typically considered as a bearish signal because it suggests that investors are betting against the stock's price. However, contrarians may consider it as a bullish signal because if the stock price begins to rise, short sellers will have to buy shares to cover their position, leading to a potential short squeeze and further price increase.