AFTERMARKET SUPPORT AND UNDERPRICING OF INITIAL PUBLIC OFFERINGS

• 成果类型: Article
• 署名作者: SCHULTZ, PH; ZAMAN, MA
• 署名单位: University of Northern Iowa
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/0304-405X(94)90004-3
• 发表日期: 1994
• 页码: 199-219
• 关键词: IPO; Underwriting; stabilization

摘要

We study the aftermarket for 72 initial public offerings (IPOs) using comprehensive trade and quote-change data from every market maker for the first three days of trading. Underwriters quote higher bid prices than other market makers for issues that commence trading at or below the offer price. Underwriters repurchase large quantities of stock in the aftermarket without risk by overselling the issue by the amount of the overallotment option. If the IPO is hot, the overallotment option is exercised. If not, the short position is covered with aftermarket selling. We discuss several reasons for underwriter support.