NEW YORK, 10 NOV (Reuters) - Short interest on the NYSE fell 3.2 percent in late October, the exchange said on Tuesday, suggesting a decrease in bearish sentiment in the stock market.

As of Oct. 30, short interest fell to about 13.01 billion shares, compared with 13.45 billion shares as of Oct. 15.

Short interest on the NYSE amounted to 3.4 percent of total shares outstanding at the end of the period, compared with 3.5 percent two weeks earlier.

Investors who sell securities "short" profit from betting stocks will fall. Short-sellers borrow shares and then sell them, waiting for the stock to fall so they can buy the shares back at the lower price, return them to the lender and pocket the difference. (Reporting by Edward Krudy; Editing by Dan Grebler)