1. Why does an IPO sometimes open several points above its offer price on its debut ?
2. Can an IPO be traded in pre-market session on its debut day ?
2006-11-16 07:38:12 · 3 answers · asked by jay j 4 in Business & Finance ➔ Investing
1. An IPO could be a hot issue... perceived to have a greater value than it's offering price. Since the IPO has never been on the open market, you never really know if it will take off or sink once it's traded on the open exchange.
2. No, you can not trade an IPO until it's on an open exchange.
2006-11-16 09:39:38 · answer #1 · answered by Mike S 7 · 0⤊ 0⤋
1. supply & demand. Sometimes issue handlers misjudge the demand.
2. Not in general as not officially avail.
2006-11-16 09:37:37 · answer #2 · answered by vegas_iwish 5 · 0⤊ 0⤋
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2006-11-17 02:16:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋