UNDERPRICING: PHENOMENON ASSOCIATED WITH IPO REALIZATION
Keywords:IPO, underpricing, information asymmetry, issuers, investors, underwriters
AbstractUnderpricing in various international market is studied in the financial literature, and during the various periods analyzed it has been found that on average buying of shares in newly listed companies and their resale on the secondary market on the first day of negotiation generates a positive return. The aim of this paper is to analyze the impact of underpricing on issuers or their shareholders and to put to discussion contemporary theoretical approaches to explaining of this phenomenon. The paper was written with the financial support of the Czech Science Foundation (Grant Agency of the Czech Republic), grant project No. 402/09/P134 "Decision Model of Company Financing via IPO".