Unformatted text preview: first day trade at $9.05 .- . . = . 9 05 9 009 00 0 00556 , =0.56% The average first day return for 2006 was 11%, which is significantly higher than the 0.56% for FortuNet. According to AmericanProgress.org, the economic conditions for 2006 could be categorized by a slowdown. The economic growth was a 5.6% in the first quarter of 2006 (when the FortuNet IPO occurred), but slowed to 2.6% by the second quarter. However, the real issue is that consumer’s debts became high, which caused a slowdown at the Casinos (which caused less business for FortuNet). This is most likely the reason why the first day return for the FortuNet IPO was so much lower than that years industry average of 11%....
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This note was uploaded on 09/07/2011 for the course BMGT 340 taught by Professor White during the Spring '08 term at Maryland.
- Spring '08