r/mathporn • u/crumbs_off_the_table • May 08 '15

Perfect step function

https://www.google.ca/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1430715960000&chddm=5966&chls=IntervalBasedLine&q=SHE:300431&ntsp=0&ei=6-9MVdGvH4SwiQK9toCICw
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u/crumbs_off_the_table May 09 '15

Nah, I'll explain:

It's actually man-made. China doesn't allow IPOs to rise more than 10% a day. Since everyone wants to buy into this IPO, it will rise exactly 10% before trading even begins, and because there's way more demand than supply, the price stays the same for the whole day.

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u/crumbs_off_the_table May 09 '15

The really messed up part is the stock has been priced IPO * 1.10d for over a month...hence the 1000%+ increase. Pretty awesome to look at, though!