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When a company does its initial public offering, they sell shares onto the open market, so they may sell. Let's just say, for example, 10 million shares on the open market and they pric their IPO at $10 Which means the company has raised a100 million in their IPO. But from that point forward, there's only 10 million shares available to trade on the open market. That's it.

10 million shares. So if all of a sudden you want to buy a position, or you want to buy a huge position, a 10% stake or 20% stake, you really have to buy. you know one or two million shares. Which let's say the price goes down to three or four dollars.

It's not Unthinkable that someone could come in and do that. And so what we find is that companies with limited levels of Supply When the demand cranks up for a variety of reasons, but typically driven by news all of a sudden, you can see these really fast moves where stocks just start squeezing faster and faster and faster. And that's what we're looking for as retail. Traders.


5 thoughts on “How ipo s create a stock s float”
  1. Avataaar/Circle Created with python_avatars @oneshot3216 says:

    Don't forget about naked shorting

  2. Avataaar/Circle Created with python_avatars @sketchyelectronics says:

    Then comes dilution

  3. Avataaar/Circle Created with python_avatars @KingRyan03 says:

    Great explanation!

  4. Avataaar/Circle Created with python_avatars @mrv797 says:

    Nice one ❤
    Can you do SPAC and offerings. Many traders don't know how it works..
    The morning show is missed.
    I miss seeing you live trading! ❤

  5. Avataaar/Circle Created with python_avatars @pashhha7424 says:

    Thank you Ross ❤

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