Nasdaq says short interest rose 2.5% in mid-March

NEW YORK, March 24 (Reuters) - Short interest on the Nasdaq rose 2.5% in mid-March, the exchange said on Friday.

As of March 13, short interest rose to about 19.972 billion shares, compared with 19.479 billion shares as of February 27.

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.