Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell
by RhodesianHunter on Monday March 06, 2017 @10:55PM
(#13808142)
"If you could short every series A or B company, you'd make a killing doing so."
That's not really how shorting works. You'd have to find someone willing to let you sell their shares, you'd have to incentivize them to do so, you'd have to find a willing buyer, and you'd have almost unlimited loss potential.
Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell
by bogomipz on Monday March 06, 2017 @11:13PM
(#13808224)
>"If you could short every series A or B company, you'd make a killing doing so."
To short a stock you generally borrow that stock(on margin) from a broker. How do you do that with a pre-IPO company?
Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell
by hkmurakami on Tuesday March 07, 2017 @01:42AM
(#13808705)
You can bet against anything with a derivative instrument as long you can find a counterparty for your bet.
Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell
by rjtavares on Tuesday March 07, 2017 @03:22AM
(#13809021)
That's not shorting though. The difference being that a short sale has an effect on the market while a bet is invisible (so you can bet the whole market cap of the company without moving the market)
As far as I can tell, the companies themselves owe it to no one other than their investors and employees to consider going public. If going public doesn't further their position, and private funding is available, the responsible thing (as perverse as that is) is to pursue private funding, no? So who's the one ultimately responsible for the current situation, the companies or the investors enabling them?