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During Britain's forgotten bicycle bubble of the 1890s, what happened to some investors who bet against overpriced bicycle shares?
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They made fortunes when prices collapsed
152 votes (36.5%)
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They were forced out before the crash
141 votes (33.9%)
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The government banned their trades
57 votes (13.7%)
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Bicycle companies bought them out
66 votes (15.9%)
Total votes: 416
Answer: They were forced out before the crash.
Explanation: They may have been right about the bubble, but being right wasn’t enough. Some Victorian “bears” suffered substantial losses because other investors could effectively corner shares they needed to cover their short positions. The bicycle market eventually crashed spectacularly – cycle shares lost around 73% from their peak – but that was little consolation to bears who couldn’t stay in the trade long enough.