Can I short sell an IPO on its first trading day?


IPO
Chanda asks:

in other words, are there restrictions on short selling an IPO on its first day?

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5 Comments to "Can I short sell an IPO on its first trading day?"

  1. Libbie

    you can short it sure but you cant buy it at the ipo price unless your buying directly from a large brokerage firm

  2. Toccara

    inorder to sell short and company has to have an establish upward momentum in there trading and stock price history. Or no broker will lend you the stock, allso to be able to short a stock, you usually need to borrow it from an institution such as your brokerage firm. For them to lend it to you, they need an inventory of this stock. Odd’s are they wont have it on an IPO’s first trading day.

  3. Gigi

    Shorting an IPO on the first day is very “brave” as prices usually go up.

    Which IPO do you want to short if you don’t mind me asking?

  4. Violet

    Your broker must have shares available for shorting that you can borrow - i.e. other clients must be long it. I doubt it would have that info on the first day of trading.

  5. Jan

    now i only did 1 short sell. but just got lucky but i think the broker has to lend u the stock and then if it goes down in price he pays u the the diffrece in the price.

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