Short Sellers Are Out To Get Lyft

Three days ago, I wrote about Lyft and the Greenshoe Option

Wall Street Secrets Revealed #7 – The Greenshoe Option

But the Greenshoe option is really a price stabilizer, to ensure that price doesn’t fall below the IPO price.  When a company’s stock price falls below the IPO price, the IPO is considered “broken,” the company and investors are disappointed and the lead underwriter suffers reputational damage.So if the company’s stock price breaks or falls below the IPO price, the underwriters will buy shares back from the market at the IPO price, which helps to stabilize the price and also removes shares

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