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Well no one would buy in at IPO time if they thought it was some kind of pump and dump scheme (of course this does happen, but is hopefully rare). An IPO is gen
by jdavis703 10y ago
Well no one would buy in at IPO time if they thought it was some kind of pump and dump scheme (of course this does happen, but is hopefully rare). An IPO is generally designed to raise cash that will be invested back into the business, and as a side effect give the investors a return.
- cloudjacker 10y agoyeah for the banks that underwrote the IPO and dumped the shares on your mom's pension plan. the liquidity of the secondary stock market is a purely American phenomenon.
- jstanley 10y ago> the liquidity of the secondary stock market is a purely American phenomenon. What do you mean by that? Loads of countries have adequately liquid stock markets.
- cloudjacker 10y agoExactly what I wrote, the liquidity is crap. Adequate? It's just down hill
- jdavis703 10y agoThat's actually not how underwriting works. If an IPO is a flop right out the gate sometimes the bank can get stuck with the shares.
- cloudjacker 10y agoThat's the risk they take on. I listen to retail investors, they clamor for IPOs no matter what the S-1 says.