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It is also possible that no matter how the opening price was, people were going to gobble it up anyways. Like others pointed out, the price slowly grew from $2
by bhudman 15y ago
It is also possible that no matter how the opening price was, people were going to gobble it up anyways.
Like others pointed out, the price slowly grew from $25, $35 and finally $45. I had placed a limit buy order for $47, and it opened at $85.
If there are any finance folks here, I have a question - who set the $85 price? Was it the underwriters? It could not have been the market because the stock started trading at $85. Also, I could not get any stock data from any of the sites (NYSE, yahoo, google, ameritrade etc) untill past 10:15am EST or so. Is this delay normal for IPOs?
- ScottBurson 15y agoI think they way they set the price is to take the number of shares available, subtract out the number for which there are market orders (i.e. orders to buy at the market price, i.e. non-limit orders), then take the remaining shares and the open limit orders, and find the highest price that gets all the shares sold. So if it opened at $85, that means there were limit orders placed at that level and higher. I don't know why there was a delay in the price reporting.