Short selling sounds bizarre when described to people unfamiliar with the workings of financial markets. Borrowing shares to sell in expectation of a price fall, then buying them back at the lower price to realise the profit, strikes many as a weird and unnatural way to make money.

Lending shares of companies you are holding in expectation of a price rise to people who want to go short sounds even odder to those unaware of what passes for standard practice in City circles. Many pension fund members might be surprised to learn that the securities held by their pension fund are regularly lent. Borrowers do not always want the stock to sell it short, but lenders are not necessarily told how the borrowed securities will be used.