, Columnist
An IPO ‘Pop’ Shows Wall Street Is Working
A big jump in share prices is what naturally happens when enthusiasm meets uncertainty.
A pop phenom.
Photographer: Victor J. Blue/Bloomberg
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If an initial public offering has a “pop” on opening day, does that mean somebody was ripped off? Did the company leave money on the table by allowing its investment bank to offer the shares at too low a price?
Maybe. But consider whether there might be a rational explanation for this pop phenomenon.