Yes, and Cheerios sets their price to compete with other cereal providers. The consumer picks the company keeping the price in mind. That's how IPO pricing wor

Yes, and Cheerios sets their price to compete with other cereal providers. The consumer picks the company keeping the price in mind. That's how IPO pricing works too. The banks compete against each other and the company chooses their underwriter. This is how markets work. I fail to see how an IPO is "rather than using a market-based mechanism for price discovery, they pick a price to sell at". I think davidw is making some strong claims without understanding how the IPO process really works