3 ms·
Line go down discovery is acceptable (that is what selling a share is). The reason you might not want options trading very early after an IPO is because the mar
by fastball 3mo ago
Line go down discovery is acceptable (that is what selling a share is). The reason you might not want options trading very early after an IPO is because the market is frothy enough without the additional layer of complexity.
- toomuchtodo 3mo agoCertainly, its reasonable for a delay in options being available while market makers prepare to make the market for those options. But shorting? Day 1, the shares are trading and available to borrow to sell to short.
- inigyou 3mo agoAre they actually? How many intermediate steps are involved in finding shares to borrow for a short? I imagine they have to be transferred to some central depository with the feature, for a start, and that takes 2-4 days
- toomuchtodo 3mo agoYour broker will locate and borrow the shares from an available pool (such as other clients' portfolios), sell them on your behalf, and hold the cash. They don't have to go to the clearinghouse.