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Stocks can often pop on the first day after IPO, if there's a lot of demand building. There was a time when companies doing IPOs would consider a 100% increase
by aamar 14y ago
Stocks can often pop on the first day after IPO, if there's a lot of demand building. There was a time when companies doing IPOs would consider a 100% increase ("shooting the moon") a realistic possibility. LinkedIn went up 117% a year ago[1]. I don't mean to indicate that these events are positive or a good expectation, just that it does frequently happen.
[1] http://money.cnn.com/2011/05/19/technology/linkedin_IPO/index.htm http://money.cnn.com/2011/05/19/technology/linkedin_IPO/inde...
- its_so_on 14y agoI guess my thought is that that expectation is dumb. My thought is it's better this way. The difference between the 'high close' and 'low open' should instead have gone to these companies: they should have IPO'd at the high price, so they have more money in the bank. Selling at half of what you'll be worth later in the day is dumb, and means you don't really know what you're worth.