Friday, 30 March 2012: 4:30 PM
My presentation deals with a critical review concerning one of the three characteristics of the Initial Public Offerings (IPOs): the initial underpricing of the stocks offered to the public, that is the pricing of the offered stocks at a lower price than their value. I will present and critically examine previous studies regarding the initial underpricing in different countries and in different economic sectors and I will make comparison of their findings. In this paper, I will also refer to the existing literature concerning the main reasons that lead the companies going public to offer their shares at a lower price.