NEW YORK, Nov 26 (Reuters) - Short interest on the

Nasdaq declined 1.98% in mid-November, the exchange said on

Tuesday.

As of Nov. 15, short interest fell to about 14.018 billion

shares, compared with 14.301 billion shares as of Oct. 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.