HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
My observation on this:
-IPO didn't reach its reserve before reset (but it came close)
-at reset several million players bought shares and moved the price a few cents up. This usually happens to an IPO that has a high reserve that isn't met before reset...it appears the "brakes" that HSX applies to stocks in their initial movement if lots of people are piling on (notice this happens with stocks that have news during the day) are already in place because of the high volume of IPO buyers, as opposed to letting the price be free at reset BEFORE applying the brakes once people pile on after reset.
-at 1 AM PST, when the brakes are usually let off for reset-traded stocks, a trader or two started shorting/selling the stock, causing it to plummet.
-it then rebounded sometime later in the morning.
The problem we're seeing is when a high-volume IPO doesn't move before reset. My suggested solutions would be to either not apply the brakes immediately at reset for a high volume stock that didn't meet its reserve (ie. just let it trade like a normal stock once its price is unfrozen, regardless of how large the volume of shares moved before reset) or else have the volume of stocks moved during IPO dictate to some degree the movement at reset.
IPO goes down, that's just wrong Feb 19, 01:12
You know honestly. This is why I only play IPO's sparingly. They just seem too unpredictable. {nm} Feb 19, 06:25
Same here {nm} Feb 19, 07:53
The way I see it, the point of limiting shares was to create a demand to buy a stock at IPO price rather than a higher price. Feb 19, 09:00
My observation on this: Feb 19, 09:29
people freak out too fast if it drops in price a bit Feb 19, 12:02
Except when it's unpredictable. ;) {nm} Feb 19, 12:40
I knew you were going to say that. {nm} Feb 19, 22:07
I guess I'm predictable. Hey, you still in our neck of the woods? Having fun? {nm} Feb 20, 21:06
Yeah, visiting a bunch of art stuff in LA this week Feb 20, 22:25