Bajaj, Mukesh; Chen, Andrew H.; Mazumdar, Sumon C. - In: Research in finance, (pp. 1-25). 2008
Chen and Ritter (2000) documented that underwriter spreads for recent US initial public offerings (IPOs) in $20 million range as well as much larger IPOs in the $80 million range are clustered at 7%. This observation has led to a Department of Justice (DOJ) enquiry into potential price fixing by...