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What Is Short Interest and Why Does It Matter to Investors?

By Matthew Frankel, CFPUpdated Aug 15, 2025 at 3:18 AM

Key Points

  • Short interest is the percentage of a stock's available shares currently sold short.
  • High short interest, often above 10% of the stock's float, indicates negative investor sentiment.
  • A high short interest can lead to a short squeeze, abruptly driving up stock prices.

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