You are funny. Why would someone be so foolish to invest all of a college fund into a biotech stock? Would it have been better to invest in Dendreon? GM pre-bankruptcy? Maybe VRX? Transocean? My guess is you posted just to post, but I guess whatever it takes to instill doubt.
No biggie..I admitted that I have no idea about it...it just makes no sense to me...guess I am simplifying it, but it seems if I have a long and short position, they would offset each other...perhaps the bid and ask pricing comes into play.. Time will tell for sure on this.
You tell her that her parent gambled and lost by investing her college money in the high risk biotech sector rather than an index fund that would have at least doubled over time and did not open a 529 fund managed by a professional brokerage firm. Chalk it up to a finance lesson for her as well as one about her parent's judgement and knowledge regarding investing.