How About Ipos For The Masses
When your average investor hears about those hot technology IPOs that surge seconds after they start trading, he turns green with envy. That’s because only the investment banks and brokerage houses that underwrite the deal, their best customers and other insiders get the stock at the initial-offering price. The masses buy at higher prices after the stock starts changing hands. With a stock like eBay, which soared from an offering price of $18 to a high of $54 on its first day of trading, the insiders stand to reap huge rewards; the hoi polloi just shoulder immense risks....