Nasdaq short interest falls 5.1 pct in late July

NEW YORK Aug 11 (Reuters) - Short interest on the Nasdaq fell 5.1 percent in late July, the exchange said on Tuesday, suggesting bearish sentiment faltered in the wake of a continuing run-up in the stock market.

As of July 31, short interest fell to about 6.78 billion shares from 7.14 billion shares as of July 15.

The Nasdaq said the short interest represents 3.1 days average daily volume, compared to an average of 2.9 days for mid-July.

Investors who sell securities short seek to profit from bets the stocks will fall. Short-sellers borrow the shares and then sell them with the hope of buying back the share at a lower price, pocketing the difference. (Reporting by Leah Schnurr; Editing by Leslie Adler)