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Where do you draw the line though? If you could short every series A or B company, you'd make a killing doing so. As far as I can tell, the companies themselve
by hkmurakami 10y ago
Where do you draw the line though? If you could short every series A or B company, you'd make a killing doing so.
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?
- RhodesianHunter 10y ago"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.
- bogomipz 10y ago>"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?
- hkmurakami 10y agoYou can bet against anything with a derivative instrument as long you can find a counterparty for your bet.
- rjtavares 10y agoThat'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)