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No, I said it is too soon to tell, and that it has more to do with the balance of power going into the IPO.
by resters 7y ago
No, I said it is too soon to tell, and that it has more to do with the balance of power going into the IPO.
- tapland 7y ago> No, I said it is too soon to tell Your comment had no relevance for what I wrote. You said it was too soon because stock can be volatile the first week, but that it ending the week down still proves desperation. This is just not right at all.
- eganist 7y agoThey explained it pretty succinctly. Grossly oversimplified: the bank is motivated to accurately price in order to preserve future business from e.g. institutional investors. Overprice and your investors bleed. Substantially underprice and you leave money on the table, less likely to be picked for future offerings. Come close and everyone's generally pretty happy. I'd be keen to hear why you believe it's "just not right at all."