Allocation of initial public offerings and flipping activity

• 成果类型: Article
• 署名作者: Aggarwal, R
• 署名单位: Georgetown University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(02)00250-7
• 发表日期: 2003
• 页码: 111-135
• 关键词: initial public offerings; Flipping; trading volume; allocation; penalty bids

摘要

There is a general perception that the large trading volume in initial public offerings is mostly due to flippers that are allocated shares in the offering and immediately resell them. On average, however, flipping accounts for only 19% of trading volume and 15% of shares offered during the first two days of trading. Institutions do more flipping than retail customers and hot IPOs are flipped much more than cold IPOs. Institutions do not quickly flip cold IPOs to take advantage of price support activities by the underwriter. Explicit penalty bids are rarely assessed against flippers. (C) 2002 Elsevier Science B.V. All rights reserved.