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by rrrrrrrrrrrryan 16 days ago
> with short selling in public markets being possible, an accurate price will be established very quickly

It'll be virtually impossible to short sell the stock within the first month due to lockups, and it'll take 180 days for all the pools to be available: then, we'll have a more-or-less "accurate" price, as you put it.

1 comments

Whatever float is available on the market can be made available for short sellers to borrow. That can even happen multiple times: ie short interest can exceed 100% of the float. Or even 100% of the market capitalisation.

With stock futures, you don't even need to borrow the stock to (effectively) short it: anyone with enough collateral can write stock futures, whether they own the underlying stock or not.