摘要：We have all heard of the huge
returns in initial public offerings
(IPOs) ¡ª the spectacular
price increases experienced by
stocks when they first trade on an
exchange. Recently, VA Linux¡¯s IPO
set a record, surging by 698 per cent
on its first day of trading on the
Nasdaq exchange. Although this
was an extreme example, Morgenson
(1999) reports IPO returns in
the U.S. have skyrocketed from an
average of 10 per cent in 1986-94 to
an average of 60 per cent in 1999.
There is ample evidence to support
the figure for the 1986-94 period ¡ª
examples are Barry and Jennings
(1993) and Chua (1995) ¡ª but the
level for 1999 is newly reported and
startlingly high. It exceeds even the
48.4 per cent return discovered by
Ritter (1984) during the ¡°hot issues¡±
market of 1980.
Loading...
