The pricing of an IPO at less than its market value. Underpricing can be seen in the difference between the offer price and the price of the first trade.
Related information about underpricing:
- Underpricing Definition | Investopedia
The pricing of an initial public offering (IPO) below its market value. When the offer price is lower than the price of the first trade, the stock is considered to be ...
- Underpricing - Financial Dictionary - The Free Dictionary
Describing a situation in which a company prices an IPO lower than its market value. This results in the company raising less capital in the IPO than it could have ...
- underpricing - The Free Dictionary
un·der·price ( n d r-pr s ). tr.v. un·der·priced, un·der·pric·ing, un·der·pric·es. 1. To price lower than the real, normal, or appropriate value. 2. To sell at a lower price ...
- IPO underpricing algorithm - Wikipedia, the free encyclopedia
IPO underpricing, is the increase in stock value from the initial offering price to the first-day closing price. Many believe that underpriced IPOs leave money on the ...
- Who Profits from IPO Underpricing?
Mar 26, 2008 ... A firm going public relies on the capital raised in its Initial Public Offering to grow and thrive, but studies have found that IPOs in the United ...
- IPO Underpricing
I. INTRODUCTION. All firms need to raise capital at one time or another to finance new projects, expand operations, or in many cases, just to start up their ...
- Why I.P.O.'s Get Underpriced - NYTimes.com
May 27, 2011 ... Underpricing has also been found to be lower when information about the issuer is more freely available so that uninformed investors are at ...
- Why Has IPO Underpricing Changed Over Time? - Warrington ...
We attribute much of the higher underpricing during the bubble period to a changing ... this and the related question of why IPO underpricing doubled from 7 % ...