When pricing IPO, the underwriters will use various key performance
Posted: Wed Jan 22, 2025 6:57 am
Even if they sell all issued stocks, the value of stocks may fall on the first day of the transaction. If so, the stock may lose its marketability, thereby losing more value. This may cause losses to investors, many of whom are the most favored customers of underwriters. Perhaps the most famous example is 2012. Therefore, underwriters will consider many factors when pricing IPO and try to reach a sufficiently low issuance price to stimulate people's interest in stocks, but high enough to raise sufficient funds for the company.
indicators and non-recognized accounting principles. [19] The process of determining dentist database the best price usually involves the underwriter （“ syndicate”）<TAG1> arranging the stock purchase commitments of major institutional investors. Some researchers （Friesen & Swift, 2009） believe that underpricing of IPO is not so much an intentional act of the issuer and/or underwriter as a result of overreaction by investors.
One potential method for determining price suppression is to use IPO price reduction algorithms. Dutch-style auctions The Dutch-style auction allows the allocation of stocks for the first public offering based only on price agility, and all successful bidders pay the same price per share. [20] [21] A version of the Dutch auction is based on an auction system designed by economist William Vickrey. This auction method ranks bids from the highest to the lowest, and then accepts the highest bid allowed to sell all stocks, and all successful bidders pay the same price.
indicators and non-recognized accounting principles. [19] The process of determining dentist database the best price usually involves the underwriter （“ syndicate”）<TAG1> arranging the stock purchase commitments of major institutional investors. Some researchers （Friesen & Swift, 2009） believe that underpricing of IPO is not so much an intentional act of the issuer and/or underwriter as a result of overreaction by investors.
One potential method for determining price suppression is to use IPO price reduction algorithms. Dutch-style auctions The Dutch-style auction allows the allocation of stocks for the first public offering based only on price agility, and all successful bidders pay the same price per share. [20] [21] A version of the Dutch auction is based on an auction system designed by economist William Vickrey. This auction method ranks bids from the highest to the lowest, and then accepts the highest bid allowed to sell all stocks, and all successful bidders pay the same price.