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Playing & Trading Strategy

How does an IPO adjust once it becomes available? <INSIDE>

Posted by: nkliph3 on Nov 23, 06:39

I understand the exact math isn't known, but I'm wondering about a few points. Let's use TOYS3 as an example...

 

People loaded up on this on IPO day. But I've read that volume held long on IPO day do not affect price the following day. So does this mean that whether 100,000 or 50,000,000 shares were held long on IPO day, it wouldn't affect price?

 

This would also mean that price only adjusts on the following day, when it's available... So no matter how many were held long on IPO day, price only goes up with people buying it after IPO?

 

I don't think I understand it fully, because by this logic, if 100,000,000 shares of something were bought as an IPO, and on the following day nobody traded it at all, the price would just remain fixed at the IPO price?

 

I'm thinking amount held long or time shares held or something has to affect price...





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