Key insights
- The article discusses restrictions on selling SPCX shares, particularly for institutional investors who face exclusion from future IPOs if they sell. Retail investors may also face platform bans for flipping SPCX. This raises questions about the actual selling power available for SPCX in the short term, especially given a shortened NASDAQ index warmup period, suggesting potential market manipulation or restricted price discovery.
So institutional investors, who hold the majority of the stock, aren't selling any SPCX for weeks or months because they would be excluded from future IPOs by the investment banks. Now I read in the NYT that flipping the stock is allowed for retail investors but that many exchanges will temporarily lock or permanently ban retail investors from their platform it they flip SPCX. Can anyone with SPCX here confirm is that's true? And if so, did IBs and exchanges practically block any selling power for the coming weeks? Seems especially nefarious with the shortened NASDAQ index warmup period...