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Politics : America Under Siege: The End of Innocence -- Ignore unavailable to you. Want to Upgrade?

To: Qone0 who wrote (5272)	9/27/2001 11:47:48 AM
From: Michael Watkins	Read Replies (1) \| Respond to of 27666

...That is why you can`t short an IPO for a period of time. Because if short sellers could short every IPO it would be much harder for the IPO shares to be sold ... All it does is transfer wealth from investors to traders. In 1998-2000 we witnessed many "IPOs" race up on opening day to astronmical valuations. By your logic, this was done by "investors" since short selling isn't possible in the US when new issues come to market. I don't think so. Investors? No way. Gamblers perhaps. All it does is transfer wealth from investors to traders. I have to repeat this comment of yours because its key -- IPO's transfer RISK from the VC's, insiders, and investment bankers to the public. The inside club takes fat gains, risk free, while the public shoulders a disproportionate level of risk, all in the hopes of landing on the next Microsoft. Try as I might to see your point, I can not.