Types of Trading
There were four ways to trade. The first two were to buy and sell. When you bought an IPO, you were investing in the fact that the prediction of that IPO will come true. If you owned shares of that IPO when the predicted event occurs, you were awarded 100 POP$ per share. When you sold owned shares of an IPO, you were given the amount of POP$ that the IPO you sold was worth for each share you owned. The next two types of trading were shorting and covering. When you short a stock of an IPO, you are investing in the fact that the IPO will fail. If you own shorted shares of the IPO when the prediction fails, you no longer must pay back your original price. A stock shorted at POP$60, on a failed IPO would have been awarded POP$60 a share, as well as their original investment, essentially doubling their investment. The investor pays back the price borrowed to own the stock at POP$0. When you cover shorted shares of an IPO, you are awarded the difference between your original short price and the cover price.
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