NEW YORK, Jan 10 (Reuters) - Short interest on the Nasdaq rose 1.7% in late December, the exchange said on Friday.
As of Dec. 31, short interest rose to about 9.238 billion shares, compared with 9.085 billion shares as of Dec. 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 Chuck Mikolajczak, Editing by Rosalba O’Brien)