IPOs - INITIAL PUBLIC OFFERINGS(IPOs COMMON STOCK OFFERINGS...

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INITIAL PUBLIC OFFERINGS (IPOs) COMMON STOCK OFFERINGS ISSUED BY COMPANIES THAT HAD NOT PREVIOUSLY ISSUED COMMON STOCK TO THE PUBLIC UNDERWRITER DISCOUNT (GROSS SPREAD ) O PUBLIC OFFERING PRICE - PRICE PAID TO COMPANY DISCOUNT 7% OF IPO OFFERING
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UNDERWRITING SYNDICATE IPOs INVOLVE A LARGE RISK OF CAPITAL LOSS FOR A SINGLE INVESTMENT BANK A GROUP OF FIRMS UNDERWRITE THE ISSUE TO SHARE RISK LEAD UNDERWRITER MANAGES THE DEAL (“RUNS THE BOOKS”) IF MORE THAN ONE INVESTMENT BANK MAY ACT AS LEAD UNDERWRITERS CO-LEAD OR CO-MANAGE THE IPO
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GOING PUBLIC SELECTION OF INVESTMENT BANK (UNDERWRITER) REGISTRATION OF IPO (PROSPECTUS – FORM 424B) WITH THE SEC (EDGAR) “ROAD SHOW” E PRESENTATION TO INSTITUTIONAL INVESTORS COMPANY AND INVESTMENT BANK SET OFFERING PRICE
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IPO SHARES MOST SHARES OF AN IPO ARE ALLOCATED TO LARGE INSTITUTIONAL INVESTORS INDIVIDUAL INVESTORS MIGHT GET SMALL ALLOCATIONS SHARES OF AN IPO
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UNDERPRICING IPOs ARE GENERALLY
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