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He’s referring to Goldman most likely deliberately underpricing the stock. During the IPO the investment bank gives access to certain folks: Their clients. They
by chrisked 6y ago
He’s referring to Goldman most likely deliberately underpricing the stock. During the IPO the investment bank gives access to certain folks: Their clients. They doubled their money almost risk free since they know demand.
- nescioquid 6y agoRight. That's why I always thought buying IPOs is a bit of a mug's game.
- alisonkisk 6y agoBuying anything volatile is a mug's game. An IPO is infinitely volatile since it has no history.
- leetrout 6y agoI didn’t know that was a thing.
- xyzzyz 6y ago> They doubled their money almost risk free since they know demand. They only did double their money if they can sell without pushing the price down. That's not easy to do for institutional investors.
- s17n 6y agoIn fact, institutional investors often make informal agreements to not flip the shares in exchange for their allocations.