Investors who want to short the shares of Arm Holdings may have to wait before the stock becomes available for shorting. Short sellers may have to wait until the newly-minted shares are available to borrow for shorting. Brokers typically wait at least a day after an IPO to give a locate on the shares.
The group has seen paper profits of nearly $13 billion this year by wagering on a drop in the prices of small-, micro- and nano-cap shares, according to an estimate by S3 Partners LLC based on the average amount of short positions in the market.