A Short Explanation of Short Selling (feat. @ThePlainBagel)

The video tutorial explains the concept of short selling, its historical origins, and how it works. It discusses the risks involved, including the potential for infinite losses, and highlights ethical concerns. A case study on the Tulip bubble illustrates the mechanics and risks of short selling. The video also covers the GameStop short squeeze, where retail investors challenged hedge funds, causing a significant market impact. The tutorial emphasizes understanding the risks and being familiar with investment tools before engaging in short selling.

Who was the first person known to have engaged in short selling?

• Adam Smith

• Benjamin Graham

• John Doe

• Isaac Lemare

What is the primary goal of short selling?

• To profit from a stock's price increase

• To hold stocks for long-term growth

• To buy stocks at a high price

• To profit from a stock's price decrease

In the example of Yannick, what was the initial price per share of Tulips International?

• $100

• $400

• $200

• $300

What is a potential risk of short selling if the stock price rises?

• No impact

• Guaranteed profits

• Infinite losses

• Limited losses

What is a short squeeze?

• A strategy to buy stocks at a low price

• A situation where short sellers are forced to buy back stocks at a higher price

• A method to increase stock prices artificially

• A technique to reduce stock market volatility

What event in 2021 highlighted the impact of short selling on the market?

• The oil price surge

• The rise of Bitcoin

• The housing market crash

• The GameStop short squeeze

What should investors understand before engaging in short selling?

• The risks and tools involved

• The guarantee of stock price increase

• The potential for unlimited profits

• The simplicity of the process