Sharks Circle Facebook (FB) As Shares Now Free to Short
Tweet Send to a Friend
Just when retail investors stuck in the Facebook (NYSE: FB) IPO thought it couldn't get any worse... it did.
Today, sources indicated that shares of the botched IPO are now freely available to short at a borrowing cost of around 7%. While shares were available to short yesterday they were hard to borrow and had a rate of around 50%.
When traders short a stock they borrow the stock, sell it at the current level, and hope to buy it back later at a lower price, pocketing the difference.
Shares of Facebook are higher in pre-open trading following a positive rating at Needham & Company, which set a Buy rating and $40 price target. Shares last traded at $31.63, up 2%.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Today, sources indicated that shares of the botched IPO are now freely available to short at a borrowing cost of around 7%. While shares were available to short yesterday they were hard to borrow and had a rate of around 50%.
When traders short a stock they borrow the stock, sell it at the current level, and hope to buy it back later at a lower price, pocketing the difference.
Shares of Facebook are higher in pre-open trading following a positive rating at Needham & Company, which set a Buy rating and $40 price target. Shares last traded at $31.63, up 2%.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Kansas City Southern (KSU) to Replace Dean Foods (DF) in S&P 500; WhiteWave Foods (WWAV) to S&P MidCap 400
- UPDATE: Tesoro Corporation (TSO) May Take Ownership of BP Carson in Early June - Reuters
- Despite Outside Interest, Tumblr and Yahoo! (YHOO) Are in Lockup (MSFT) (FB)
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkRelated Entities
Needham & Company
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
