NYSE says short interest up 1.7% in mid-May

NEW YORK, May 27 (Reuters) - Short interest on the NYSE rose 1.7% in mid-May, the exchange said on Monday.

As of May 15, short interest rose to about 18.456 billion shares on NYSE Group, which includes the NYSE, NYSE Arca and NYSE American exchanges, compared with 18.143 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.