NEW YORK, June 10 (Reuters) - Short interest on the

Nasdaq fell 2.1% in late May, the exchange said on Tuesday.

As of May 30, short interest fell to about 16.114 billion

shares, compared with 16.467 billion shares as of May 15.

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.