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Why couldn't Microsoft say to Goldman: "If the average price on the first day is more than 30% of what we get, your commission is reduced" ?
by MarkMc 15y ago
Why couldn't Microsoft say to Goldman: "If the average price on the first day is more than 30% of what we get, your commission is reduced"
?
- meow 15y agoThat's the problem. All commission details are negotiated before hand. Bankers even have the right to issue some more stock after the listing if they find the listing to be profitable.
- flipbrad 15y agoFor a setup with conflicts of interest left right and centre, you end up adding another: a bank wanting to depress the share price once it hits a threshold. Who, if that were to happen, would buy a share knowing Goldman's eagle eyes are on it, ready to slap it back down to 30%?