NEW YORK, Oct 24 (Reuters) - Short interest on the

Nasdaq rose 0.3% in mid-October, the exchange said on

Thursday.

As of Oct. 15, short interest rose to about 14.432 billion

shares, compared with 14.383 billion shares as of Sept. 30.

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.