GREY:LFDEF - Post by User
Post by
investedwolfon Apr 19, 2016 10:13pm
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Post# 24786945
The underwriter
The underwriterStarts by shorting the stock into the financing knowing full well they have access to as many $4.00 shares as they want. If they get lucky they increase the bought deal knowing full well they have already sold a million shares in excess of $4.00 as an example. If they could find a buyer at $4.10 for 2,000,000 shares they sell it! The only fool in these games are the retail buyers who in this case, in less than a year, are down 75%.