Short Interest Metrics

This question tests whether you understand how hedge fund and market participants gauge bearish positioning and potential short squeeze risk. It focuses on the logic behind comparing short positions to trading volume and to the shares actually available for public trading, which helps interviewers see if you can think about market liquidity, supply of shares, and what short interest means in practice. Questions like this are common because capital markets interviews often check familiarity with basic market metrics and the ability to explain why those measures matter to investors.