Bill Ackman Wants Less Money
PSUS, Citi loan files, is CrowdStrike securities fraud and Gary Gensler’s cell phone.
Every initial public offering is marketed in two ways:
That second story is, to some degree, self-fulfilling. The company’s banks will call an investor to ask “how much do you want to buy in this IPO?” The investor will say “well how is it going?” The correct answer is not “we’ve got orders for 80% of the shares, so it would really help if you’d put in a big order for the other 20%.” The answer the investor wants is more like “we’ve got orders for 1,000% of the shares, but if you put in a big order we’ll see what we can do for you.” The more demand the investors think there is, the more demand there will actually be: Investors want to buy into IPOs that don’t need their money, because those are the ones that will trade up.1