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DOW JONES NEWSWIRES
Short interest in Nasdaq-listed stocks fell 2% in the last half
of June from the prior two-week period, while short interest in
stocks on the New York Stock Exchange edged down 0.4%.
Nasdaq's short interest totaled 7.17 billion shares of 2,797
Nasdaq securities as of June 30, down from 7.31 billion shares in
2,801 issues in the middle of the month. The short ratio, or the
number of days' average volume represented by outstanding share
positions, rose to 3.74 days from 3.67 days. The exchange is part
of Nasdaq OMX Group Inc. (NDAQ).
NYSE's short interest, meanwhile, declined to 13.44 billion
shares from 13.49 billion earlier in the month. That amount
represents 3.51% of total shares outstanding. The New York Stock
Exchange is part of NYSE Euronext (NYX).
Investors who short shares borrow the stocks and then sell them,
betting that the prices of the shares will fall so the stock can
later be repurchased at a lower price for return to the lender.
Stocks can also be shorted for reasons other than bearish bets,
including hedging strategies.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com