This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The core mechanics of a short sale, including the concept of borrowing and returning shares. - The critical requirements of Regulation SHO, including the 'locate,' order marking, and mandatory close-out rules. - The distinction between using short sales for speculation versus hedging a long position. - The dynamics of a short squeeze and how it creates significant risk for short sellers. - The most critical exam trap: understanding that the maximum loss on an unhedged short sale is unlimited. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep