Nasdaq short interest up 0.21% in late August

FILE PHOTO: A view of the exterior of the Nasdaq market site in the Manhattan borough of New York City

(Reuters) – Short interest on the Nasdaq rose 0.21% in late August, Nasdaq said on Friday.

As of Aug. 31, short interest rose to about 11.02 billion shares from nearly 11 billion shares Aug. 13.

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.

(Reporting By Sinéad Carew; Editing by Chris Reese)