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On the Pricing of Unseasoned Equity Issues: 1965–1969

Published online by Cambridge University Press:  19 October 2009

Dennis E. Logue
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Extract

Recent research focused on the market for first public offerings of common stock has indicated that investors who purchase new issues at the offering price will quickly achieve relatively large systematic profits. This is attributable to either the inability or the reluctance of investment bankers to reoffer the shares in which they deal at market-clearing prices. This paper examines factors that influence investment bankers in their pricing decisions and subsequently determine the short-run performance of new issues.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 8 , Issue 1 , January 1973 , pp. 91 - 103
Copyright
Copyright © School of Business Administration, University of Washington 1973

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