IPOs: Jumping Over the Moon

摘要

You can hear them mustering in the streets, waving banners, shaking fists and shouting "I want my IPO." Investors see easy money being made, and expect a cut. In the old days (say, two years ago), brokers joked that IPO meant "It's probably overpriced." Better words today might be "I'm practically obsessed." An initial public offering (the real words behind IPO) marks the first time a company sells its shares to the public. The opening price is generally set around 15 or 20 percent below the hoped-for market price, says Ian Zwicker, president of the online investment banking firm WE. Hambrecht, in San Francisco. That leaves room for a quick and profitable pop, when the stock starts to trade.