13 June 2014
IPO - don't play the sucker's game
New Share Issues and IPO's are usually coming to the market when it is advantageous for the Sellers and not for the Buyers. On top of it the allocation process is less than transparent in most cases - the 'good' clients are favoured by the issuing houses, and I don't even want to imagine what 'inducements' are sometimes given behind the scenes. All this in an age where computerised auction systems could easily be created to ensure that there is a fair process to strike an issuing price that is acceptable to buyer and seller and gives every investor - big and small - a fair shot to get the paper they wish to subscribe for.
Labels:
Bond Issuance,
IPO