In its IPO documents, Reddit said the price and volume of its stock could “experience extreme volatility for reasons unrelated to our underlying business.”
No, but a 10% drop from the prior close triggers a short sell restriction for a full trading session. In that event, you can only short on upticks in price. Unless you are day trading shorts, it’s a meaningless restriction that’s easily abusable by HFTs.
Most you can short it in a day is 10 percent right? I dunno if they’re disciplined enough.
No, but a 10% drop from the prior close triggers a short sell restriction for a full trading session. In that event, you can only short on upticks in price. Unless you are day trading shorts, it’s a meaningless restriction that’s easily abusable by HFTs.
I’m not knowledgeable about it for sure, it just seems rather next to impossible to tank an IPO with borrowed shares alone.