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In response to
"The way this is designed, you are betting against other players (so to speak), so there really isn't that kind of risk for the exchange operators."
by
psilotum
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My assumption is the only money they collect is the IPO and the trading fee
Posted by
Will Hunting (aka JoeMetz)
Apr 20 '10, 15:16
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Let's say they open with Dear John for $40 or so...they sell 1,000 shares at $40 to start; they are up $40,000. The shares float and cash out at $80. They now have to pay out $80,000 and have lost $40k. The only fees I see them making are the trades and you'd need to have each share trade 20 times for that to be break-even there. ($1 sell / $1 buy)
Am I missing something? The wrong miss-IPO and they're out a ton, no?
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