3 ms·
What are the types of investors that will invest in WeWork after IPO? I can see that even on regular investment forums they think it’s a joke... Will it be day
by stingraycharles 7y ago
What are the types of investors that will invest in WeWork after IPO? I can see that even on regular investment forums they think it’s a joke...
Will it be daytraders? Index funds? Or just “suckers” that have a fear of missing out?
I’m not trolling, I really try to understand what reasoning those people have.
- dvtrn 7y agoSeems to me if someone is shorting We because they really expect a drop following this and just want in on the action to scalp what they can, are they really a sucker? Scalpers gonna scalp.
- chocolatebunny 7y agoI didn't think you could short immediately after IPO.
- homologate 7y agoUnderwriters are not allowed to lend out shares for short sale until 30 days after the IPO. Other investors could lend out shares but there are not going to be that many shares on the market right after the IPO. https://www.investopedia.com/ask/answers/05/062905.asp https://www.investopedia.com/ask/answers/05/062905.asp
- jdmichal 7y agoIf you want to short a stock, you get far better leverage with options than actual short positions. And AFAIK there's no limitations there.
- dbuder 7y agoYou can make a OTC/private deal and you can buy puts and sell calls. I'll be spectating the book on day one, the underwriters might have to defend, really defend, not just touch the number like FB.
- skybrian 7y agoMost index funds won't buy because they aren't in the relevant index. Something like Vanguard's total market index fund would be an exception, since they buy everything. But it's market weighted, so maybe not that much?