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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Short Interest Theory

Definition:

This investing theory notes that stocks with lots of investors betting that the stock will go down—will in fact likely go the other direction. Part of the reason for this is that eventually the shorts have to buy back their short position or cover it so if they are "spooked" by good news, the stock should rock.

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