Short interest ratio Definition
The short ratio (or short interest ratio) is usually the number of shares of shares of a publicly traded company that is sold short, divided by the average daily trading volume (daily transaction). It can also be the percentage of the free float that is "shorted".
It is one measure of the market's outlook on a given stock; a higher short interest ratio indicates more pessimism, because a higher proportion of a company's total float has already been sold short.