Shorting a stock is selling shares you do not actually possess. Therefore, to liquidate your position, you'd have to buy the number of shares you shorted. To make money off shorting, you want the price to continue dropping past the price you shorted the stock at.
Locking the price for a day is an idea to remedy the problem that happened with Spore--a few people logged on right when the IPO happened, and several new members were able to double their net worth in a short amount of time. Locking the price for a day means you don't have to be at your computer right when the IPO occurs, and this also will reduce server load (which has been a big problem recently). I think this can be combined with a bidding process to determine the initial price, though.
I agree w/ csinning 100%. It just doesn't make sense to release the IPO and freeze the price for an entire day. I like the bidding idea too. btw. the volume has more than doubled since i jumped on Mario, what effect is that going to have?
Now there is a good idea. That would ensure that the stocks are fairly priced at launch of the new ipo and also that everyone has their chance to get in on a piece of the action.
@ Adam540 I think the idea is that some people where upset with other IPOs in that others made a lot on stocks by being on when it became available, or soon after where as others who were not online at that time didn't have a shot. What I think needs to be done is the offering has to have an initial number of shares availble and allow people a day to bid on them. At the end of the day the availble shares are sold to the top bidders. Thus the price fluctuates but anyone can still get in at the beginning when the stock hits the open market.
I don't fully understand this whole "Everyone can buy it at list price" thing. How can you expect it to go up or down if everyone can get it or short it at the same price. If everyone buys now then everyone is going to try and sell it at a higher price but there will be no one to buy it because everyone already bought it. Maybe were better off shorting it because then when everyone has bought they will realize there is no way to make money and sell at a lower price. I prefer the idea of having it come into the market and fluctuate accordingly. It's much better that way.
I can't help but feel uneasy paying so much for an IPO. I limited the # of shares I bought but 450dkp seems pretty steep for a Wii game. I can't decide if I want to jump on it now or wait till around the holidays
I see, and when you short something your shares go into the negatives correct? If so I think I understand the concept. The help section was decidedly unhelpful. Thanks for filling in the blanks Alpha.
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