Replies to post #111293 on Biotech Values

[rwwine]

I too was both surprised by that and perplexed.

[jbog]

Mnta Over-allotment,

The only rules that the investment houses have to live with when dealing with the over-allotment is that they must cover any naked short postion that they might have.

Now, they easily could have taken the extra 350k shares and dumped them on the open market for a easy $1.25 profit, or of course they could have held them in their own account.

It's only a naked position that would prevent this.