Yep thats true. But since the shares take days to clear non-syndicate members wont officially be able to lend shares till after a few days.
when the underwriters phone up their buddies and "best clients" and offer them IPO's at the ground floor price they usually extract an agreement that none of these shares can be sold before a certain date. Though unless I was one of the underwriters "best buddies" I certainly would not touch the typical IPO, if you are foolish enough to buy an IPO after the hype and run-up, you would certainly want to know when the restriction on sales ends, because all those who got the discounted shares are going to be dumping them on that day to an unsuspecting public. There is nothing honest about Wall Street, least of all initial public offerings.
http://www.cnbc.com/id/43098403 "Why You Cannot Short LinkedIn" http://www.ft.com/cms/s/0/04a62734-849d-11e0-afcb-00144feabdc0.html "Short sellers set to target LinkedIn" Options Clearing: New Listings http://www.optionsclearing.com/market-data/series/new-listings/
You may want to ask Doug Kass. He twitted on Friday that he was closing his LNKD shorts for a profit...lol
LNKD is now on the short list with IB. http://www.interactivebrokers.com/e...d States&ib_entity=llc&ln=&asset=&b=LEG&e=LOV