He doesn't, he wants other people to buy the stock so that its price gets pushed back above 480, but since the market thinks that Pierpoint the underwriter of the IPO, overvalued Lumi's fundamental story due to issues with its debt and EBITDA (This is an adjusted profitability measure that takes out Income tax and certain non-cash expenses, and is supposed to represent more of a cash for cash profit/loss figure of the business's operations.), therefore there is an increasing amount of selling pressure coming from the market to push the price of the stock downwards. Rishi currently owns a lot of the shares since he is the trader that is IPOing the company, not only does he have targets from management regarding how much stock he needs to sell, but also since the price of the stock is getting pushed down, his profit and loss on the position is going lower and lower. Earlier he tried to support the stock by buying more from the market, but he said that his risk limits have been reached which means that he can not access more funds to buy the stock and support its price. He's annoyed with the salespeople since they keep on asking rishi what is his bid (i.e. what is the price at which rishi can buy the stock from their clients over the phone.), this is why Eric and Rishi are both saying not to answer the phone or help clients to sell the stock, instead they want the salespeople to try and find buyers for the stock so that they can reach their targets as a team of traders and salespeople.
Venetia is so stunning
Why does Rishi only want to give bid prices if he only wants buyers?
Pretty sure a "bid" is the price a buyer would pay for it. People are calling for a bid price because they want to buy.
He doesn't, he wants other people to buy the stock so that its price gets pushed back above 480, but since the market thinks that Pierpoint the underwriter of the IPO, overvalued Lumi's fundamental story due to issues with its debt and EBITDA (This is an adjusted profitability measure that takes out Income tax and certain non-cash expenses, and is supposed to represent more of a cash for cash profit/loss figure of the business's operations.), therefore there is an increasing amount of selling pressure coming from the market to push the price of the stock downwards. Rishi currently owns a lot of the shares since he is the trader that is IPOing the company, not only does he have targets from management regarding how much stock he needs to sell, but also since the price of the stock is getting pushed down, his profit and loss on the position is going lower and lower. Earlier he tried to support the stock by buying more from the market, but he said that his risk limits have been reached which means that he can not access more funds to buy the stock and support its price. He's annoyed with the salespeople since they keep on asking rishi what is his bid (i.e. what is the price at which rishi can buy the stock from their clients over the phone.), this is why Eric and Rishi are both saying not to answer the phone or help clients to sell the stock, instead they want the salespeople to try and find buyers for the stock so that they can reach their targets as a team of traders and salespeople.
@@EclipseCircle a seller has an *asking* price. A buyer has a *bidding* price.
@@azursmile hey, thanks for pointing this out