It is understandable that people are on the lookout for villains to blame in this time of national crisis – and who better than City ‘fat cats’ who are ‘profiting from the misery of others’? Usually it only takes a moment of serious thought to realise that these attacks are ludicrous. As Tom Bailey explains here, and I discussed here, it is plain daft to criticise investment managers for taking advantage of lower prices to buy shares. But when funds are engaged in ‘short selling’ it may take a little more effort to see the bigger picture.
Short selling is essentially a bet that the price of a financial asset will fall. It traditionally involves the short seller borrowing a parcel of shares or bonds from another investor and then selling them on. The original holder will charge a fee for this, which can be substantial.
At…
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Utopia, you are standing in it! 
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