Nepotism. IPO stocks are artificially rationed to maintain a daily 10% gain in order to control liquidity and reduce volatility -- and, more to the point, the

Nepotism. IPO stocks are artificially rationed to maintain a daily 10% gain in order to control liquidity and reduce volatility -- and, more to the point, the IPO price is low for the benefit of investors. In practice, only those with the best connections are able to participate in the daily trade quota rationing.