RE:#NoFreeSharesForPiratesIt seems like that's the way it would work - that the PP investor would try to work the price down so they get a better entry. What actually usually happens is worse
- They jack the price up prior to the PP (drawing retail trend-chasers in)
- Short into the buying frenzy that was happening prior to the PP
- Announce the PP at below market (but probably the 50 day average price or something)
- Short again into the weakness (since the short is covered by their PP shares)
If they can, they'll also get some warrants thrown in so they don't even have to hold the PP beyond the minimum hold period.