3 ms·
The parent commenter is wrong. Banks get a percentage cut of the funds raised. They lose by getting the price wrong in either direction. If the IPO is underpric
by AmericanChopper 6y ago
The parent commenter is wrong. Banks get a percentage cut of the funds raised. They lose by getting the price wrong in either direction. If the IPO is underpriced the bookrunner leaves money on the table for both the company, and by extension themselves.