Research consistently shows that new underwritings generally are no bargains for investors; that they come to market overpriced.
Though there are SEC regulations against over-hyping of securities in the period just before and during securities registration, the financial media often builds on pertinent news to a fever pitch for “hot” issues.
The result is an auction atmosphere for opening prices. Often, many soon cool. ( See the Earl J Weinreb NewsHole® comments.)
No comments:
Post a Comment