OpenIPO is a new mechanism of pricing and allocation of initial public offerings. The system, which is based on the Dutch auction is an attempt to investment bank WR Hambrecht + Co to change the way the IPO, they go. Housing provides an environment in which to discuss the existing set of institutional arrangements related to underwriting IPOs, including a well-known phenomenon of the initial spike in the price of the day. Also provides a means to discuss the effectiveness of the information stock prices and the role of intermediaries and markets in providing investors with company-specific information. Can be used to talk about the issues raised electronic trading and placement of securities through the Internet relatively uninformed persons. "Hide
by Andre F. Perold, Gunjan Bhow Source: Harvard Business School 18 pages. Publication Date: October 20, 1999. Prod. #: 200019-PDF-ENG
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