Short Selling: Borrowing Shares Instead of Money

In this episode of Money Lessons, Andy explores one of the most misunderstood practices in financial markets — short selling. He traces the origins of the practice to Isaac Le Maire and the Dutch East India Company in 1609, walks through the mechanics of borrowing shares to sell them, and explains the asymmetric risk that makes short positions fundamentally different from owning a stock. He brings the lesson to life with the spectacular 2008 Volkswagen short squeeze, when the German automaker briefly became the most valuable listed company in the world. AndrewTemte.com