Blodget explains why: If underwriters aimed to price each IPO exactly at fair-market value, there would be no incentive for institutions to take the risk of buying the stock before the ... that therefore if they end up …
This paper analyzes the initial public offering (IPO) underpricing phenomenon in Portugal. We show that the ‘hot issue’ market of 1987, coinciding with a speculative bubble in the stock market, is well explained by investor …
The paper analyses the underpricing effects and IPO stock’s first month, first quarter return in GEM of China, …
The upshot: It is easier for a wave of positive sentiment to drive the price up than for negative sentiment to drive it down, making overpricing more likely than underpricing. “Investors with the most optimistic views about a …
Wharton School of the University of Pennsylvania
This study examines the impact of underwriter reputation on IPO underpricing and long-run performance in the China stock market over the period 2001 to 2006. This sample period is notable for the implementation of a …
A stock issue is deemed to be underpriced if the closing price ... issues continue to be significantly underpriced. For example, on average, underpricing in the US from 1980 to 2001 was 18.8 per cent. In the dotcom boom …
Royal Dutch Shell has won a billion-pound court battle over the underpricing of its shares. The Indian branch of the oil giant was accused of selling its stock for a lower-than-usual amount to its parent firm, and the country's …
India
The first study tests the implications of some of the leading IPO underpricing models ... The public availability of bid and allocation data in the Hong Kong Stock Exchange has made it possible to conduct such an in-depth …
Analysis of IPO underpricing: Evi dence from Bombay stock Exchange. International Journal of Re search ... Journal of Finance, 44, 393-420 [15] Loughran, T., & Ritter, J. R. (1994). Initial pubic offerings: International …
They often do not know the value of the stock until it is made public and in the stock market for awhile. This is not always an intentional strategy. They often do not know the value of the stock until it is made public and in the …