Hot Markets, Investor Sentiment, and IPO Pricing

We model an IPO company's optimal response to the presence of sentiment investors andshort sale constraints. Given regulatory constraints on price discrimination, the optimal mech-anism involves the issuer allocating stock to `regular' institutional investors for subsequentresale to sentiment investors, at prices the regulars maintain by restricting supply. (...)

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Year of publication:	2003-11-06
Authors:	Ljungqvist, Alexander P. ; Nanda, Vikram ; Singh, Rajdeep
Subject:	Going Public \| Anlageverhalten \| Investment Banking \| Emissionskurs \| issue rate

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Extent:	304128 bytes 51 p. application/pdf
Series:	NYU Working Papers NYU Working Paper ; No. FIN-01-007
Type of publication:	Book / Working Paper
Language:	English
Classification:	Management of financial services: stock exchange and bank management science (including saving banks) ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

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