Short-Sellers’ Holdings Set NYSE Record

New York Stock Exchange short interest rose to a record high in the month ended Aug. 15, breaking the previous high set last month.

The NYSE reported Thursday that shares in the hands of short-sellers increased 24.49 million shares, or 2.8%, to 907.12 million shares.

The previous high of 882.63 million shares was set in the period ending July 15.

In a short sale, a trader borrows stock from a broker and sells it in the open market, betting that the price will decline. If that happens, the trader can replace the shares later at lower prices, and profit from the spread.

A large short position typically means that many traders expect the stock market to decline in the near term. But some consider an increase in short interest bullish because the borrowed shares must be bought back eventually, which can spark a rally.