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If it's a no-brainer, why aren't short sellers flooding the market and driving down the price to the post-lockup price?
by gujk 15y ago
If it's a no-brainer, why aren't short sellers flooding the market and driving down the price to the post-lockup price?
- antr 15y agothere is a limited amount of free-float which you can borrow against. the counter-party needs to purchase that stock, and if a large number of investors want to short sell the stock, they are indirectly increasing the demand. a good example is how hedge funds lost eur30bn back in 2008 trying to short sell overvalued volkswagen stock. i.e. Porsche selling part of its VW stake to ease a short-squeeze