Used during the heyday of IPOs in the 1990s, the deceitful practice of setting the offering price of an initial public offering below the projected market relative to its demand to create a larger spike in the price upon its release to the public. Investment banks that held back large blocks of shares benefited from the instant profit generated from the price jump.
Related information about IPO spinning:
- Spinning (IPO) - Wikipedia, the free encyclopedia
Those opposed to the practice liken IPO spinning to a disguised form of corporate bribery and believe that it cheats two classes of investors: The shareholders in ...
- IPO Spinning - Financial Dictionary - The Free Dictionary
The act or practice of an underwriting or brokerage firm giving shares of an IPO, especially a popular issue, to major executives in some company unrelated to ...
- A New Look at an Old Trick: IPO Spinning - Deal Journal - WSJ
Oct 1, 2009 ... The U.S. IPO market is widely believed to be heating back up. So it seems timely that a new paper is being published that studied the way in ...
- Spinning Definition | Investopedia
Pages From The Bad CEO Playbook. Excess compensation, golden parachutes, tunneling and IPO spinning make these bad executives even worse.
- The Economic Consequences of IPO Spinning - HEC
May 18, 2009 ... IPO spinning is one of the four scandals associated with IPOs that have ... 28, 2003 for settlement details regarding IPO spinning and analyst ...
- The Economic Consequences of IPO Spinning — The Harvard Law ...
Sep 30, 2009 ... (Editor's Note: This post comes to us from Xiaoding Liu and Jay Ritter of the University of Florida). In our paper, The Economic Consequences ...
- No More IPO Spinning
Jul 29, 2002 ... The National Association of Securities Dealers proposes new regulations for IPOs. Also: United drops tickets.... Verizon adds customers.
- Ipo spinning | Define Ipo spinning at Dictionary.com
Main Entry: IPO spinning. Part of Speech: n. Definition: initial public offering spinning; the practice of an investment bank setting aside portions of a corporation's ...