Journal of Financial Economics Vol. 29 No. 1 1991

The pricing of equity offerings

Claudio F. Loderer^1,2; Dennis P. Sheehan^1,2; Gregory B. Kadlec^1,2

¹ University of Bern · ² Purdue University West Lafayette

Abstract

Examination of 1,600 seasoned equity offerings reveals little evidence that underwriters systematically set offer prices below the market price on the major exchanges, though they may do so for NASDAQ issues. Quick round-trip transactions in seasoned offerings are not profitable, but subscribing to an offering and holding the stock for 30 days seems to be very profitable, especially in the NASDAQ market. In addition to seasoned offerings, we analyze 250 issues of new classes of preferred stock. These issues are not underpriced.

DOI

10.1016/0304-405x(91)90012-9

Volume

29

Issue

1

Pages

35-57

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

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