5 ms·
This is always how it works. Institutionals always get first dibs (and the middle, and the last)
by taurath 6y ago
This is always how it works. Institutionals always get first dibs (and the middle, and the last)
- Triv888 6y agoDo you see anything wrong with that?
- hntrader 6y agoAfter a new listing, retail can buy at the same instant as institutions, as long as the retail broker allows it, and many do.
- brainflake 6y agoWell not necessarily... didn't google use a dutch auction 15 years ago?
- bluedevil2k 6y agoNo, a Dutch auction a single product with the price ticking down. They used an OpenIPO auction format.
- harryh 6y agoNot with a direct listing. Coinbase shares would be subject to an auction and the market for them will open at the price where supply meets demand.
- bluedevil2k 6y agoNot entirely true - since people had to enter a single point on their demand curve as a price and quantity of shares (instead of their entire demand curve) the market clearing price was artificially low. Hence the price pop on day one. To think about it more in depth - assume I enter a bid of 100 shares at $100. If the market clearing price is $50, I’ll be awarded 100 shares at $50. However, I was willing to buy far more than that at a higher price, so I’d go buy more shares on the open market, driving the price up.
- deleted 6y ago[deleted]
- kortilla 6y agoBut the point is that everyone with a bid >=$50 got filled.
- solveit 6y agoIf I am willing to buy 100 shares at $100, I may be willing to buy 300 shares at $60. So just because my bid got filled doesn't mean I won't be buying more.
- harryh 6y agoIf you're willing to buy 300 shares at 60, but only 100 shares at $100 you can enter two bids: 100 shares at $100 200 shares at $60 This will satisfy your demand position.
- cbhl 6y agoIf the person has only 18000 though (300 at 60) then if they put in 100 at $100, they'll only be able to buy 133 at 60. I would still enter two bids; it's just a matter of adjusting how many at each level.
- 6y ago