Your questions:
1. How many days post-IPO can the public take a short position? (UBID's been trading about 3 weeks)?
In order to short, stockit must be borrowed. To be borrowable, it must be marginalble. Stocks are not marginable until 30 days after they are issued. 30 days is the time period.
2.Market makers have different rules related to short selling. Rather than get into it, please visit the NASDR website at nasdr.com do a search for short sales, market makers...
3.If so, how does the market maker recoup a short
position that's skyrocketing into new highs everyday?...
like anyone else, watching a short position, you cover, you take your loss, you vow to never to do it again..these market makers dont want to take positions in these stocks..they want to get an ordre to buy at the market, get it a teenie less and make the spread...thats all...they get stuck with position, thye kick it out...take home a short position in UBID without supervisor approval, get anew job the next morning.
Regards,
Steve@yamner.com |
