I thought this was common knowledge, for obvious reasons. The bank handling the IPO is the one setting the price. They purposely try to overvalue the stock to

I thought this was common knowledge, for obvious reasons. The bank handling the IPO is the one setting the price. They purposely try to overvalue the stock to rake in more money. Sometimes, institutional investors and banks would even have access to information that small investors may not be aware of [0]. In any case, IPOs are paydays not only for founders and early investors, but banks, and regular folks are more likely to be the ones providing the liquidity. [0] https://www.businessinsider.com/how-facebook-ipo-investors-got-screwed-2012-12#no-small-public-market-investors-ever-saw-or-even-knew-about-these-estimates-or-facebooks-guidance-all-the-public-got-was-vague-language-in-the-prospectus-about-risk-factors-6 https://www.businessinsider.com/how-facebook-ipo-investors-g...