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Finance Dictionary and Glossary of Investment Terms
Public Short Ratio
A technical indicator that shows the relationship between the number of public short sales and the total number of short sales. The usefulness of the public short ratio (PSR) is based on the premise that of all short sellers, the public picks the worst possible time to sell short. If this is true, then we should buy when the public is shorting (historically high PSR) and sell when the public is buying (historically low PSR).