3 ms·
Why does it persist? I can think of three non-exclusive possibilities: * Market power of banks * Corruption of the stock-compensated managers who benefit fro
by nuclearnice1 6y ago
Why does it persist?
I can think of three non-exclusive possibilities:
* Market power of banks
* Corruption of the stock-compensated managers who benefit from the pop
* Genuine or perceived benefit to the company in further price raising. (Mentioned above)
- lmm 6y agoThere's an (also non-exclusive) argument that it's a fair price for the risk that IPO buyers are taking. IPOs do "fail" sometimes, so the pop isn't as great a risk-adjusted return as it looks.