Economy

VIDEO: Short Selling Stocks Was Invented As Revenge

In the early 1600s, there was only one stock and it didn't take long before a man named Isaac Le Maire tried to manipulate the price.
In the early 1600s, there was only one stock and it didn't take long before a man named Isaac Le Maire tried to manipulate the price. NPR

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Four hundred years ago, Isaac Le Maire helped found the Dutch East India Company. (You might remember them from history class: Think big wooden boats, trips across rough seas, and lots and lots of spices).

Anyway, Le Maire got caught up in a dispute over some expense reports, and so his co-directors essentially banished him from the spice trade.

Anyone else might've backed away, but Le Maire wanted revenge. And so the short sell was born.

Listen to the original Planet Money podcast episode here! Subscribe to our video series here — and while you're at it, subscribe to our podcast.

Copyright 2019 NPR. To see more, visit https://www.npr.org.

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