Two Plus Two Newer Archives  

Go Back   Two Plus Two Newer Archives > Other Topics > Business, Finance, and Investing

Thread Tools Display Modes
Prev Previous Post   Next Post Next
Old 08-12-2007, 04:10 AM
ActionDavidK ActionDavidK is offline
Join Date: Aug 2006
Posts: 46
Default IPOs

In a Random Walk Down Wall Street Malkiel says My advice is that you should not buy IPOs at their initial offering price and that you should never buy an IPO just after it begins trading at prices that are generally higher than the IPO price. He goes on to say six months is generally set as the lock up period, where insiders are prohibited from selling stock to the public. Once that constraint is lifted the prices of the stock often tanks.

Can IPOs be shorted?

What does Malkiel mean when he says insiders?
My guess: The management can sell the shares of the company that they have after 6 months?

Why does the stock usually drop after the lock up period ends?
My guess: If Im correct with my assumption above, its because its a bad sign to see the management cash in their stocks?
Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

All times are GMT -4. The time now is 05:22 PM.

Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2021, vBulletin Solutions Inc.