When companies go public, the equity they sell in an initial public offering tends to be
underpriced, resulting in a substantial price jump on the first day of trading. The underpricing …

IPO underpricing is inherently related to both wealth retention and wealth creation. This
paper reviews the relationship between IPO underpricing and wealth, then presents the …

This paper examines aftermarket trading of underwriters and unaffiliated market makers in
the three‐month period after an IPO. We find that the lead underwriter is always the …

Minimum price variation rules help explain why stock prices vary substantially across
countries, and other curiosities of share prices. Companies tend to split their stock so that the …

Prior research has assumed that underwriters post a stabilizing bid in the aftermarket. We
find instead that aftermarket activities are less transparent and include stimulating demand …

We examine syndicates for 1,638 IPOs from January 1997 through June 2002. We find
strong evidence of information production by syndicate members. Offer prices are more …

We report the average costs of raising external debt and equity capital for US corporations
from 1990 to 1994. For initial public offerings (IPOs) of equity, the direct costs average 11.0 …

We examine theories of IPO underpricing using unique data from Israel where the allocation
to subscribers is by equal proration. This enables us to simulate the return earned by …

This paper studies Nasdaq market makers' activities during the one and one‐half hour
preopening period. Price discovery during the preopening is conducted via price signaling …

The validity of many economic studies hinges on the ability to properly classify trades as
buyer or seller-initiated. This study uses the TORQ data to investigate the performance of the …