Exchanges, bubbles and central banks · 1600s–1790s
1609
The first short seller and the first ban
Isaac Le Maire bets against VOC shares, and the Dutch ban the tactic in 1610.
Isaac Le Maire, a former VOC director, sold VOC shares he didn't yet have, planning to deliver them later at a lower price. As the price fell, shareholders complained.
In 1610 the authorities banned the practice, the first known rule against short selling.
💡 Why it made sense then
If you believe a price is too high, selling now and buying later is the way to act on it. Those who own the shares see it as an attack, which is why short selling has been argued over ever since.
🎮 In Journey Shares
You can short any listing through the game's bank, with 150% collateral.
Ideas it gave us
- 🎯 Short selling
Short selling is borrowing shares, selling them, and buying them back later, to profit if the price falls.
Practise with $10,000 in play money
Free. No real money involved.