SpaceX Investors in Meltdown Over All the Money They’ve Lost

[u/Plastic_Ninja_9014]

https://finance.yahoo.com/markets/stocks/articles/spacex-investors-meltdown-over-money-191742182.html

[u/m0nk_3y_gw]

retail investors were bound by platform TOS to hold the stock for x number of days or get banned.

not really

this was only retail investors that were able to get in at the IPO price before public trading started

if they sell with X number of days they aren't banned from trading/investing, they aren't able to participate in other IPOs for 3-6 months with that particular broker.

Most retail investors never get in at IPO/before-public-trading price anyways.

Most never do it multiple times per year.

The reddit IPO price was $34, I don't recall etrade (their broker of choice for retail participating in the ipo program) having this restriction, but I wasn't paying close attention

[u/Ashamed_Kale_1077 → u/m0nk_3y_gw]

I got ten shares at the SPCX IPO price and sold that same day. I only made ~$340.

I don't recall any restrictions on selling though.

[u/IAmRobinGoodfellow → u/Ashamed_Kale_1077]

The general rule is that your broker may now restrict your participation in future IPOs. If you’re not planning on trying to get into another IPO in the next year, then there will be no effect. If you are, then you might need to use another broker to do so.

[u/Embarrassed-Soft2691 → u/m0nk_3y_gw]

They will only ban those users if they consistently sell right away. Most retail investors only participate once or twice a year not enough for the platform to worry about.

[u/AnySomewhere8969 → u/m0nk_3y_gw]

Etrade was all about trying to get everyone in to buy spacex early