Nasdaq short interest falls 10pct in late Sept

NEW YORK, Oct 9 (Reuters) - Short interest on the Nasdaq fell 10 percent in late September, the exchange said on Thursday, reflecting the U.S. Securities and Exchange Commission's ban on short selling of financial stocks.

As of Sept 30, short interest fell to about 9.062 billion shares, compared to 10.071 billion shares as of Sept 15.

The Nasdaq's short ratio, or the average number of days it would take to cover the outstanding short positions, decreased to 3.24 days as of Sept 30, from 5.22 days in the previous reporting period.

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.

The SEC's emergency ban on short selling in more than 950 financial stocks expired after the close of trading on Wednesday.

(Reporting by Phil Wahba)