Nasdaq short interest up 3.3% in mid-May

NEW YORK, May 27 (Reuters) - Short interest on the Nasdaq rose 3.3% in mid-May, the exchange said on Monday.

As of May 15, short interest rose to about 16.467 billion shares, compared with 15.945 billion shares as of April 30.

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.