Nasdaq short interest up 0.3 percent in late September

Nasdaq short interest up 0.3 percent in late September

Short interest on the Nasdaq rose 0.3 percent in the second half of September, the exchange said on Tuesday.

FILE PHOTO: A view of the exterior of the Nasdaq market site in the Manhattan borough of New York City, U.S., October 24, 2016. REUTERS/Shannon Stapleton/File Photo - RC1E36F004D0

NEW YORK: Short interest on the Nasdaq rose 0.3 percent in the second half of September, the exchange said on Tuesday.

As of Sept. 29, short interest rose to about 8.547 billion shares, compared with 8.523 billion shares as of Sept. 15.

Investors who sell securities 'short' borrow shares and then sell them, expecting the stock to fall so they can buy the shares back at the lower price, return them to the lender and pocket the difference.

Shorting can also be part of a hedging strategy.

Source: Reuters