March 26 (Reuters) - Short interest on the Nasdaq rose

about 2.2% in mid-March, the exchange said in a statement

released late on Tuesday.

As of March 14, short interest rose to about 15.66 billion

shares, compared with 15.33 billion shares at the prior

settlement period, which was Fed. 28.

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.

(Reporting By Sinéad Carew)