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Brother Irfan from New Jersey emails

and asks about the shorting of stocks

Is it permissible or not?

Is it permissible to short sell stocks or not?

Now short sale is a market transaction

In which the investor borrows money from a broker

and then sells the borrowed shares

So it's not his, the broker lends him shares for a fee

So the broker will say, I will sell you

or lend you 100 shares of Tesla

But you have to pay me for my lending this to you

and you guarantee me that you're going to pay me back

the value that it is right now

Now why would somebody do that?

Because the anticipatory value

is that you have to pay me for my lending

and you guarantee me that you're going to pay me back

The anticipation is that this stock is going to decline, go down

And so the buyer will sell at the lower price

He waits for the price to go down to the desired amount

After this he will purchase the shares

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