And who benefits from that first day pop? Only the best customers of the banks who led the offerings. Why should they get a windfall when they did nothing to build the company and when they will be out of the stock so fast it will make your head spin?
–A VC: Some Thoughts On The IPO Market For Web Companies
Too true. I wonder what would happen to pricing if the underwriters put some restrictions on the initial shares. This is common, for example, in speculative real estate development, for similar reasons.
Posted on Thursday December 22nd
About me
Technology innovation enthusiast; entrepreneur and friend thereto; currently running Yahoo! Games and living in Los Angeles; probably oversharing on Twitter.
