Location of Repository

Allocation of Initial Public Offerings and Flipping Activity. Forthcoming

By Reena Aggarwal and Jel G

Abstract

There is a general perception that the large trading volume in initial public offerings is mostly due to “flippers ” that are allocated shares in the offering and immediately resell them. On average, however, flipping accounts for only 19 % of trading volume and 15 % of shares offered during the first two days of trading. Institutions do more flipping than retail customers and hot IPOs are flipped much more than cold IPOs. Institutions do not quickly flip cold IPOs to take advantage of price support activities by the underwriter. Explicit penalty bids are rarely assessed against flippers

Topics: Initial public offerings, Flipping, Trading volume, Allocation, Penalty bids
Year: 2001
OAI identifier: oai:CiteSeerX.psu:10.1.1.196.2391
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://citeseerx.ist.psu.edu/v... (external link)
  • http://www.msb.edu/faculty/agg... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.