Reddit plans to place a big chunk of its IPO shares in the hands of its users, an unusual move that could build loyalty but also comes with risk.
The company plans to reserve an as-yet-undetermined number of shares for 75,000 of its most prolific so-called redditors when it goes public next month, according to people familiar with the matter. The users will have the opportunity to buy Reddit shares at its initial public offering price before the stock starts trading, a privilege normally reserved only for big investors.
Ideally for the company and its underwriters, Reddit shares will rise in their stock-market debut, bestowing big gains on those who buy in at the IPO price. If the stock falls, however, it could anger those members of Reddit’s community—a group that, broadly speaking, hasn’t shied away from boycotts in the past.
Banks generally favor selling the bulk of an IPO to big money managers that tend to hold stocks for a relatively long time. Individual investors are viewed as more fickle and prone to selling at the first sign of weakness.
There was manipulation on both ends. But the initial squeeze was a very deliberately orchestrated attempt by a few major holding firms - Fidelity, Blackrock, and Vanguard most notably - to inflate a bubble and organize a graceful exit from their long GME position.
Because their parent company, Citadel, realized these other firms were fucking them with their own app.
But by then most of the damage had been done and the major stock holders had re-positioned themselves. A bunch of retail investors got caught with some of the bag, but they were incidental in the clash of industry titans.
Anyone who points to a shift on the order of several hundred million dollars in a matter of days and says "Organic" is a sucker.
It’s hilarious how wrong all your takes are across the board. You are repeating the narrative of wall street executives and the WSJ. Are you a child?
Enjoy your time in the casino.
I don’t invest or gamble whatsoever. You are just confidentially factually incorrect quite often and it’s annoying
Right back at you dude, don’t you have any more dogshit takes on ASoIaF to confidently spout despite never having read the books? This is how you are on every subject