NEW YORK: 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. (Reporting by Chuck Mikolajczak Editing by Chris Reese)