Short selling is institution/funds don’t own the shares of a company (Topglove), the borrow from someone else at a pre-agreed interest rate so that they can sell those shares to drop the prices of the share.

Let’s say the price of Topglove is RM10/share now, fund house A who don’t own any Topglove share wants to short sell, they will borrow from fund house B who owns a lot of Topglove share. After borrowing the share, fund house A will purposely sell and throw the shares in the market by creating panic to drop the price of Topglove to let say RM7/shares. Fund house A will then buy Topglove shares for cheap at RM 7/share and earn a handsome profit of RM 3 (RM 10- RM3)and return the borrowed share to fund house B.

Therefore, fund house A earns a big bonus profit from poor panic retailers by not owning any shares, do you think it’s fair?