> It would basically guarantee that everyone who won the auction would be immediately under water. That's why you'd use a second price auction, or similar stru

> It would basically guarantee that everyone who won the auction would be immediately under water. That's why you'd use a second price auction, or similar structure - accept a list of buy offers (price + quantity of shares), sort by price, and then choose bids in order until you've raised all the money you want to. Charge all bidders the price of the lowest offer that you satisfied. I don't think there would be a 40% pop if they'd sold shares initially like that. The reason people use this system is that it enriches the banks that recommend which system to use.