Shorting the market takes some skill as most people are passive investors and look to buy on dips and hold for the long term. With that in mind, be sure to complete research before shorting the market because it may not be for everyone. You have to keep in mind there may be a cost to short the shares that can eat into your profits. Short selling is a great way to take advantage of a short term market down swing, but as we all know, the market typically rounds and continues pushing to the upside.
Short-Ratio
 | By Nathan Young | Macroaxis Story |
Shorting a market is when you borrow shares from a broker; sell them on the market, and then buying them back at hopefully a lower price, returning the shares to the lender. The short ratio is essentially letting the market know the number of share being shorted of that equity. Also, it can tell you how long it will take the borrower to buy those shares back.
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Reviewed by Rifka Kats
When you see the percentage of the market being shorted getting higher, you can gather there is a bearish mentality in the current market settings. This type of statistic can be used in both fundamental research as well as technical. If you’ve been around the market long enough, you will have heard the term a short squeeze. When this occurs, it is when the market is going up and short sellers begin buying shares to cover their positions, contributing to the upward trend.
How important is ShiftPixy's Liquidity
ShiftPixy financial leverage refers to using borrowed capital as a funding source to finance ShiftPixy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ShiftPixy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to ShiftPixy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of ShiftPixy's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between ShiftPixy's total debt and its cash.
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