9 ms·

There are ways to hedge though, right?

• jpdoctor 15y ago
  Not usually, you need someone on the other side of the transaction. And even if the options were available, the volatility would make the spread very costly.
  • lancewiggs 15y ago
    The standard way, if you are prohibited from trading that stock, is to buy derivatives that are short on a basket of similar stocks. This hedges against a general market fall, such as 2001.
• nikcub 15y ago
  yes, any good broker can set you up with a collar. you miss the upside but it will keep your price locked in until the lockout period expires. A lot of people do that. If you work at a startup that is about to IPO, there is a high chance that the brokers will find you and will pitch you all of these services.