NYSE short interest rises 4.2 pct in late-Feb

NEW YORK, March 6 (Reuters) - Short interest on the New York Stock Exchange rose 4.2 percent in late February, the exchange said on Thursday, suggesting an increase in bearish sentiment in the stock market.

As of Feb 29, short interest rose to about 15 billion shares, compared to 14.4 billion shares as of Feb 15.

Short interest as of Feb 29 was equal to 4 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 Kristina Cooke)