RE: Interesting news release…In order to get listed on the NASDAQ, Westport has to get 4 brokerage houses (or more) that will “support the stock” if it drops below, or reaches a pre-determined price… the fact that they got a listing, means they have 4 market makers (MMs) who stepped up and said they would. In return for this obligation they get the to right to take part in any financing… in this case the MMs are likely the brokerage houses that are taking part in the IPO; (but not necessarily so…)
Each situation is different, so don’t think that what Westport is doing here, is how all IPOs/listings work on the various exchanges… they are as many different variations as there are listings; but that’s the jist of it…
Any short trader would know that; the poster yesterday was simply trying to shake out the cheap shares… he may have already had the stock shorted, and knew full well that the stock would not likely drop lower than it had… if this is the case, he probably covered his short yesterday, because Westport is most likely to trade sideways or up to the $17.13 strike price until we hear more about the prospectus…
Please don’t ask me how short trading works… I’d have to write a short book to explain it… lol…