| ▲ | londons_explore 2 hours ago |
| Insiders who have locked up stocks but still want to sell could presumably just short the stock and take out a loan secured on the stock to get the financial effects of selling, without actually selling... I wonder if that's what's happening with ~$1T of stocks currently locked up... |
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| ▲ | WarmWash 2 hours ago | parent | next [-] |
| If anyone knows of a broker who will let you withdraw the proceeds (cash) of a short sale, I will buy the name of the broker off you. I'll also let you know why I would pay for this (although you may already know anyway, hah). I spent a week researching this talking to fidelity, schwab, IBKR, and Robinhood, none would allow it. |
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| ▲ | icelancer an hour ago | parent [-] | | I asked an adjacent question to a broker friend who flatly replied: "Not interested in being served a Wells Notice." Which more or less answered the question for me, even if he was being a bit hyperbolic. |
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| ▲ | laluser 2 hours ago | parent | prev | next [-] |
| That’s almost always prohibited. |
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| ▲ | meowkit 2 hours ago | parent [-] | | Given the current administration’s recent market behavior I would not be shocked if people got away with exactly what OP described. | | |
| ▲ | compiler-guy 2 hours ago | parent | next [-] | | It's often prohibited by contract, not just law, so what the administration thinks is only part of the story. | | |
| ▲ | godwinson__4-8 2 hours ago | parent [-] | | Of course whether or not a contract is or is not enforceable as such is also a matter of law. As I understand, this IPO was unique for a variety of reasons. The fact unique terms are promulgated in a contract does not mean (at least in saner times) that they are automatically immune to regulatory scrutiny. |
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| ▲ | 2 hours ago | parent | prev [-] | | [deleted] |
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| ▲ | tehlike 2 hours ago | parent | prev | next [-] |
| You don't "short the stock" by taking a loan secured by it. |
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| ▲ | jedberg an hour ago | parent | prev | next [-] |
| Insiders aren't allowed to short a stock. It's against the law. |
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| ▲ | tonfa an hour ago | parent [-] | | Against corporate policy, it's against the law only if they trade on material non public information. Once the lockup expire they'll be able to trade (sometimes there's trading window but some tech company don't have any for lower level employees), and they'll still be insiders. |
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| ▲ | stymaar 2 hours ago | parent | prev | next [-] |
| What happens if you get margin called in this scenario? |
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| ▲ | dominotw 2 hours ago | parent | prev [-] |
| That would be a crime. |
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