NYSE short interest up 10.8 pct in mid-March

NEW YORK, March 24 (Reuters) - Short interest on the New York Stock Exchange rose 10.8 percent in mid-March, the exchange said on Tuesday, suggesting an increase in bearish sentiment in the stock market.

As of March 13, short interest rose to about 16.178 billion shares, compared to 14.608 billion shares as of Feb. 27.

Short interest as of March 13 was equal to 4.23 percent of the total shares outstanding on the NYSE, the exchange said.

Investors who sell securities "short" profit from betting stocks will fall. Short-sellers borrow shares and then sell them, waiting for the stock to fall so they can buy the shares back at the lower price, return them to the lender and pocket the difference. (Reporting by Phil Wahba; editing by Carol Bishopric)