I will assume you ceded the arguements now that we know MS spent 6 billion two hundred million dollars. I'm sorry your MS shares will drop but they priced FB way too j
High and are paying the price.
You can't sel short when the price is so close to the IPO price. If you are the only buyer then you are selling to yourself. MS has 160 million shares and spent 6 billion dollars.
I am trying to say that at the very least this may have been mitigated by selling short the greenshoe, perhaps early in the day. Are you saying that it is certain that MS didn't use it? You never bothered answering this question. And how do you know that MS did not short even more during the day, thus mitigating the "stabilization" further?
No we don't agree....
Normally large investors place huge orders at an IPO because they don't get all the shares they order. In this case they got them all. Since they ordered more than they wanted they were selling and MS had to buy the shares. You aren't getting this. FB got it's $38 a share and isn't giving that money back. MS is sitting there with massive numbers of shares.
In other words, a large fund orders 1 million shares only expecting to get half a million. Then they actually end up buying the full million. FB got it's money, 38 million dollars. Now the fund manager dumps half the shares onto the market. This happened across the board. With huge selling pressure, MS is then forced to buy ALL those shares at $38 to ensure the price doesn't drop below.
LOL you need to read that more carefully. That supports the idea that MS was buying. They alloted too many shares and had to cover or BUY them back. This isn't a normal short that you think of. Those investors didn't want those shares so MS had to buy buy buy. Notice the term "support" is lined through? It's a joke because everyone is saying MS "stabilized" the price. The fact is, MS was buyer of last resort yesterday. They have tons of shares and will lose boatloads of money. They really screwed this one up.
It will be very obvious next week. When the price falls you'll know that MS is losing boatloads of money. Shorting stock only works if there are buyers. Since the price dropped, there were not enough of them.
Maybe, probably if you want.They came in the day with the capacity to be 2.4 billion dollars short. Who told you that they didn't first unload their greenshoe and then perhaps short more before having to buy to stabilize the POS? But yes they may have screwed up, big what do I know? I am saying there is an unknown, you say the only one is the mountain's size. Fine.