Allocation of initial public offerings and flipping activity

被引:120
作者
Aggarwal, R [1 ]
机构
[1] Georgetown Univ, McDonough Sch Business, Washington, DC 20057 USA
关键词
initial public offerings; flipping; trading volume; allocation; penalty bids;
D O I
10.1016/S0304-405X(02)00250-7
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
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.
引用
收藏
页码:111 / 135
页数:25
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