Why it matters: Short interest is the number of shares that have been sold short but have not yet been covered or closed out. Traders make money from a short position if the price of the stock falls and they lose if it rises. Falling short interest can be a sign that the market is more bullish on a stock.

In Ocugen Inc's case, the number of shares sold short has decreased 14% since the last report. This could be a sign that the market is becoming more bullish on it.

Follow the most shorted stocks here.

Short Interest reports are issued twice a month by the Nasdaq exchange, so a company's short interest can change between reports and usually the reports are delayed. Also, it's important to remember that experienced traders do not base their trading decisions off one signal alone. However, short interest can be a useful signal in a trader's toolbox.

This article was generated by Benzinga's automated content engine and was reviewed by an editor.