Where Banks really Make Money On IPOs
All of these numbers are hypothetical, of course, but the bigger point is simple: if Goldman manages to get kickbacks, in terms of extra commissions, of more than 7% of its clients’ profits, then it has a financial incentive to underprice the IPO. And Goldman’s clients were desperate to give it kickbacks: they didn’t just route their standard trading through Goldman, since that wouldn’t generate enough commissions. Instead, they bought and sold stocks on the same day, at the same price. Capstar Holding, for instance, bought 57,000 shares in Seagram Ltd at $50.13 per share on June 21, 1999 — and then sold them, on the same day, at the same price. Capstar made nothing on the trade, but Goldman made a commission of $5,700. Capstar’s Christopher Rule says that in May 1999, fully 70% of all of his trading activity “was done solely for the purpose of generating commissions”, so that he could continue to keep on getting IPO allocations.
Rigging The IPO Game [more inside]
posted by the man of twists and turns
on Mar 11, 2013 -
Google IPO: the Prospectus
. Of particular interest in this 119-page (not including appendices) monster document are the Risk Factors
(there are lots) and the Letter from the Founders
, an "owner's manual" for Google shareholders: "Google is not a conventional company. We do not intend to become one... If opportunities arise that might cause us to sacrifice short term results but are in the best long term interest of our shareholders, we will take those opportunities
... We aspire to make Google an institution that makes the world a better place". Of course, if hardcore financial stuff is your bag, there's plenty of that, too.
posted by reklaw
on Aug 1, 2004 -
A hundred times no!
The family of the man who coined the term "Googol" (well, to be honest, he swiped it from a nine-year-old kid) are angry that Google hasn't given them a taste of the upcoming IPO.
posted by baltimore
on May 16, 2004 -
Another "Google heading for an IPO" report
- but this time it's for real, according to the Financial Times. Apparently the shares will be sold through an electronic auction "designed to prevent a recurrence of the sort of financial scandals that have engulfed Wall Street since the collapse of the dotcom bubble". Not that Google was ever going to be Enron.
posted by zimbobzim
on Oct 23, 2003 -
Dot-Com Is Dot-Gone, and the Dream With It
A New York Times article on the dot-com-crash.
"Each day, the old idols seem to fade further into the dim past, barely recollected in a country where the languages of "revolution" and "warfare" are no longer just business metaphors. This is the next step after the bursting of the dot-com economic bubble — the bursting of the cultural bubble, the end of the nerd as a crossover hit, of the I.P.O. zillionaire as role model to college students."
I agree that our country is in the beginning of a cultural revolution; starting with the dot-com crash last year and accelerating with 911. Am I alone or does anyone agree?
posted by Oxydude
on Nov 25, 2001 -
Pre-owned Search Engine $250,000,000 o.n.o
is hinting at an end of year IPO for a measley $250 million. Is this the beginning of the end of the dot-com crash?. Via The Register.
posted by fullerine
on Jun 25, 2001 -
Female execs improve IPO performance
This article asserts that it is the female's amazing communicative powers that sets her aside from her male peers in this arena. While I think that is possible, it seems a little namby-pamby and unscientific to focus on that female stereotype as the key.
posted by amanda
on Dec 2, 2000 -
to the list of sites getting hit by Denial Of Sevice Attacks lately. The site went down just as they were getting extra traffic because they just released their IPO, good timing...or I should say bad timing.
posted by Mark
on Feb 8, 2000 -