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Author: Raymond P.H. Fishe Publisher: ISBN: Category : Languages : en Pages : 40
Book Description
Stock flippers pose a problem for underwriters of initial public offerings (IPOs). They subscribe to the issue, but immediately re-sell their shares, so they create an artificial demand that overstates the true demand in the market. We model how underwriters set the offer price to maximize profits in this environment. Given the underwriter's expectation of flipping activity, we find that the choice of an offer price defines whether the issue is a cold, weak, or hot IPO. A cold IPO is under subscribed; a weak IPO is over-subscribed, but flippers cause the after-market price to decrease; and a hot IPO is over-subscribed but after-market price increases. We show that flippers have the greatest effect on weak IPOs, and provide an explanation for underwriter price support activities. In contrast to existing models of price support, we show that underwriters profit from after-market purchases, particularly if the issue includes an over-allotment option. The over-allotment option causes the underwriter to choose a lower offer price, which may lead to underpricing. We also show that price support combined with the over-allotment option provides a put option to the underwriter, not the market. These results are found to be consistent with recent empirical research on IPOs and price stabilization by underwriters.
Author: Raymond P.H. Fishe Publisher: ISBN: Category : Languages : en Pages : 40
Book Description
Stock flippers pose a problem for underwriters of initial public offerings (IPOs). They subscribe to the issue, but immediately re-sell their shares, so they create an artificial demand that overstates the true demand in the market. We model how underwriters set the offer price to maximize profits in this environment. Given the underwriter's expectation of flipping activity, we find that the choice of an offer price defines whether the issue is a cold, weak, or hot IPO. A cold IPO is under subscribed; a weak IPO is over-subscribed, but flippers cause the after-market price to decrease; and a hot IPO is over-subscribed but after-market price increases. We show that flippers have the greatest effect on weak IPOs, and provide an explanation for underwriter price support activities. In contrast to existing models of price support, we show that underwriters profit from after-market purchases, particularly if the issue includes an over-allotment option. The over-allotment option causes the underwriter to choose a lower offer price, which may lead to underpricing. We also show that price support combined with the over-allotment option provides a put option to the underwriter, not the market. These results are found to be consistent with recent empirical research on IPOs and price stabilization by underwriters.
Author: Stefan Feuerriegel Publisher: Springer ISBN: 3319527649 Category : Computers Languages : en Pages : 134
Book Description
This book constitutes revised selected papers from the 8th International Workshop on Enterprise Applications, Markets and Services in the Finance Industry, FinanceCom 2016, held in Frankfurt, Germany, in December 2016. The 2016 workshop especially focused on “The Analytics Revolution in Finance” and brought together leading academics from a broad range of disciplines, including computer science, business studies, media technology and behavioral science, to discuss recent advances in their respective fields. The 9 papers presented in this volume were carefully reviewed and selected from 13 submissions.
Author: Compiled by the British Library of Political and Economic Science Publisher: Routledge ISBN: 1134340036 Category : Business & Economics Languages : en Pages : 675
Book Description
First published in 1952, the International Bibliography of the Social Sciences (anthropology, economics, political science, and sociology) is well established as a major bibliographic reference for students, researchers and librarians in the social sciences worldwide. Key features * Authority: Rigorous standards are applied to make the IBSS the most authoritative selective bibliography ever produced. Articles and books are selected on merit by some of the world's most expert librarians and academics. *Breadth: today the IBSS covers over 2000 journals - more than any other comparable resource. The latest monograph publications are also included. *International Coverage: the IBSS reviews scholarship published in over 30 languages, including publications from Eastern Europe and the developing world. *User friendly organization: all non-English titles are word sections. Extensive author, subject and place name indexes are provided in both English and French. Place your standing order now for the 2003 volumes of the the IBSS Anthropology: 2002 Vol.48 December 2003: 234x156: Hb: 0-415-32634-6: £195.00 Economics: 2002 Vol.51 December 2003: 234x156: Hb: 0-415-32635-4: £195.00 Political Science: 2002 Vol.51 December 2003: 234x156: Hb: 0-415-32636-2: £195.00 Sociology: 2002 Vol.52 December 2003: 234x156: Hb: 0-415-32637-0: £195.00
Author: Compiled by the British Library of Political and Economic Science Publisher: Psychology Press ISBN: 0415326354 Category : Economics Languages : en Pages : 676
Book Description
IBSS is the essential tool for librarians, university departments, research institutions and any public or private institution whose work requires access to up-to-date and comprehensive knowledge of the social sciences.
Author: Philip E. Auerswald Publisher: Edward Elgar Publishing ISBN: Category : Business & Economics Languages : en Pages : 760
Book Description
Auerswald and Bozkaya have edited this collection of 24 papers about entrepreneurial finance, and the role the government takes in financing and motivating these concerns. These papers emphasize how entrepreneurs have taken advantage of a globalized economy to achieve unprecedented and accelerated success. Topics include the role of private equity and debt markets, entrepreneurial survival tactics and the relationship between entrepreneurs and bureaucrats. Written for business students and modern entrepreneurs, this large reference volume also discusses the debate between self-financing vs. the use of lending institutions.
Author: Raymond P.H. Fishe
Author: Raymond P.H. Fishe
Author: Andreas Krause
Author: Stefan Feuerriegel
Author: United States. Securities and Exchange Commission
Author: Compiled by the British Library of Political and Economic Science
Author: Compiled by the British Library of Political and Economic Science
Author: 
Author: Philip E. Auerswald
Author: 
Author: