[sdkmvx]

Well the IPO price is the price at which the company sold new stock to the public. Then the price moves however the market causes the price to move. They're not going to sell new stock to the public, but the price will move however the market causes it to move.

The market works because there are always people willing to take both sides simultaneously. To some extent this is driven by people who have different opinions. This is also drive by people working on different time frames. Somebody who thinks it will rise in the next 10 years may buy from somebody who thinks it will fall in the next 10 minutes.

When there are not hoards of people willing to take both sides, price starts to move around erratically. Ultimately Spotify isn't very widely held. I doubt any of the current holders are interested in trading frequently. They want to make their trade and get out. So who is selling on the first few days? Market makers will work both sides of the market as they always do, but they won't hold a large short position against a rising market. Instead the spread will be large. That's why I suspect we'll see some wild price swings before the market settles down.

On the other hand, you could say this about any IPO. And it's true that the first few days are often rocky. It remains to be seen if Spotify's plan produces a more rocky start than is usual.

They certainly could (subject to market manipulation laws). Would it work? Probably not. There will be sellers willing to sell short naked (intending to buy back by the end of the day so they don't have to deliver non-existent stock). I'm sure there's many holders, since Spotify has been around for a while and presumably has some sort of stock compensation program. Will they all refrain from selling? No, because somebody wants to renovate his kitchen.