HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
I believe the "reserve" or whatever it's called, was installed so that many traders could get in at the ground floor and then affect price.
Previously, with the price frozen until reset, everyone could get in on the ground floor, but only reset traders determined which direction the price went once it was unfrozen. Now, theoretically, any trader can dictate the direction upon unfreezing when the reserve is met...it could be during the afternoon, the evening, or reset. A little more level playing field.
If you immediately open the gate at IPO, you'd have an even more "unfair" system where only the first person at 12 PST would be able to get in at the ground floor price, and it would shut out anyone who can't be logged in at that time from participating. At least with the original way this was done, people had the whole day to get in at the same IPO price before only the traders who could play at reset time moved the price.
HSX really needs to get their **** together re: these IPOS and how volatility affects stock movement Dec 04, 02:16
Sorry if the above was a bit ranty... the point is: the current IPO system doesn't work, please change it back. Dec 04, 04:38
Well said WW,...not ranty at all! {nm} Dec 04, 09:47
+1. Dec 04, 22:05
First, it is what it is, so why can't you deal with it? Second, why don't you short them, if it such an obvious trade? {nm} Dec 05, 06:40
oops, that was meant for TWW, not A4J. {nm} Dec 05, 07:44
FYI, whether the IPO price is frozen or not until reset would not change the direction of first movement after reset. Dec 05, 10:09
Just to get the facts straight, XMEN5 went up 3 and dropped 2. You don't have to daytrade IPOs. Dec 05, 10:14
It went up 3 from 25,000,000 shares bought and went down 3 from roughly 3,000,000 or less at reset. {nm} Dec 05, 12:11
There is logic to the formula. I can't comment on it further or traders can figure out how to game the system. Dec 05, 15:36
DMac, can I suggest something? Dec 05, 18:24
I believe the "reserve" or whatever it's called, was installed so that many traders could get in at the ground floor and then affect price. Dec 05, 18:34
Err...correction, I meant 9 AM PST (12 PM EST) for when the IPO is issued. {nm} Dec 05, 18:35