Nasdaq short interest up 1.4% in mid-January

NEW YORK, Jan 27 (Reuters) - Short interest on the Nasdaq rose 1.4% in mid-January, the exchange said on Tuesday.

As of January 15, short interest rose to about 18.828 billion shares, compared with 18.568 billion shares as of December 31.

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.