4 ms·
Is today the first day you can short Lyft? Or could you do so on Friday already. I'm not sure of the mechanics of stock borrow right after an IPO.
by rb808 8y ago
Is today the first day you can short Lyft? Or could you do so on Friday already. I'm not sure of the mechanics of stock borrow right after an IPO.
- shereadsthenews 8y agoMarket participants can sell anything short by picking up the phone. Retail accounts still can’t sell Lyft short because there are no shares available to borrow. Also there is still not yet an options market available to all, but again if you’re a trader and you can get someone to write you an option there you go.
- mandevil 8y agoAs I understand it, you can short an IPO on day 1, but it probably won't work out very well for you, because the underwriting banks have agreed to buy shares at a specific price if the price falls. So if you try and short it you are getting into a game of 'who has more money' with a bunch of investment banks, which you will rarely win.