(Adds NYSE figures.)
DOW JONES NEWSWIRES
Short interest in Nasdaq- and New York Stock Exchange-listed
stocks jumped in the second half of August, according to the latest
figures for the exchanges' semimonthly statistic.
Stocks slid throughout most of August, which turned out to be
the second-worst month of the year, behind May, for the Dow Jones
Industrial Average. A steady stream of disappointing economic data
worried investors and led to growing concerns over whether the
economy could be headed towards a double-dip recession.
The Nasdaq's short interest totaled 7.61 billion shares of all
2,878 Nasdaq securities as of Aug. 31, compared with 7.22 billion
from 2,882 securities as of Aug. 13. The short ratio, or the number
of days' average volume represented by outstanding share positions,
grew to 3.98 days from 3.54 days. Nasdaq is a unit of Nasdaq OMX
Group Inc. (NDAQ).
At the NYSE, a unit of NYSE Euronext (NYX), short interest grew
to 14.36 billion shares, equal to 3.76% of total shares
outstanding. That was up from a revised 13.74 billion shares in the
prior period.
Investors who short shares borrow and then sell them, betting
that share prices will fall and that they can buy them back at a
lower price for return to the lender. Stocks can also be shorted
for reasons other than bearish bets, including hedging
strategies.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com