HSX Forum

Playing & Trading Strategy

IPO's dont move in price until the initial number of shares has been bought or reset happens. then, after reset the first action on that

Posted by: David_Francis (a.k.a BayStreet) on Apr 29, 09:09 in response to blandestk's post Ok, someone explain this to me.

stock is what will change the price.  eg...100 Million shares of an ipo can be shorted, and only 1 million held long.  but, if after the ipo shares are gone and market value takes over, 200,000 people now buy it long, the stock will go up.  all the people who shorted the stock while it was still at its IPO price dont do anything to actually change the price, they only really act as an example of what traders think the stock will do over the longer term, not immediately on reset.  also, people who held a short position and covered it makes the stock also rise.  hopefully that helped....





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