A Wild Stock Mkt. Story…

[Recyclersteve]

I’m doing something a bit different here. I don’t want to waste time writing something that very few people read.

If you’re interested in hearing a wild stock market story that happened on Friday, September 12, 2025, please respond to this message with a “yes”. I assure you, the media WON’T COVER THIS, at least not for a good long time.

If there is enough interest, I’ll take the time to publish it. Hint: this should give you a little better idea about what happens behind the scenes in the stock market. You will likely consider this to be either “clever” or “sneaky” depending on your point of view.

[silverflake]

YES

[shinnosuke]

I'm always eager to hear a good tale.

[NiBullionCu]

yes please

[Recyclersteve]

Something I noticed about GEMI (Gemini Space Station) Friday that was either clever or sneaky depending on your point of view. GEMI was a brand new stock experiencing their very first day of trading. This is what is referred to as an IPO (Initial Public Offering).

CNBC said openly more than once that GEMI was indicated to open at $37. Whomever decided on the price to open it at likely saw LOTS of orders to buy at exactly $37 (based on what CNBC said). What did they do? They opened it at $37.01. All those buyers at $37 missed by a penny and many would now likely change their prices to get (chase if you will) the stock.

Trading was halted less than 1 minute later and when it resumed (roughly 10 minutes later) it was trading at $44.47. There were likely many market orders to buy. Shortly after the stock plunged sharply and quickly.

Was that clever or sneaky? Even though I sold at $44.47 and made good money, I think it was sneaky!

P.S. I bought at $37.01 (the open) and sold at $44.47 (the first price when trading reopened after being halted). I was trying to sell at $38.89 and would have been happy with that price. Instead, I made 20.1% (over $8,200 on 1,100 shares) in just 11 minutes. If you annualized that return for a full year, I’d be really rich!

[shinnosuke]

Thanks for sharing...the story, not the profits.

[Lemon Thrower]

that happens on a lot of IPOs because the underwriters exercise their greenshoe option to balance the order book. Yes, it was the investment banks who bought at 37.01.

there is a natural tension in pricing IPOs because if you price too high they don't succeed and if you price too low the company leaves money on the table - in your example, every penny above $37 went to a secondary seller, not to the company having the IPO. So yes you can make a quick buck on IPOs but you can lose a quick buck as well.