NEW YORK, Oct 9 (Reuters) - Short interest on the Nasdaq

rose 0.2% in late September, the exchange said on Wednesday.

As of Sept. 30, short interest rose to about 14.383 billion

shares, compared with about 14.350 billion shares as of Sept.

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.