Comment Re:Troubling signal, why? (Score 1) 471
It's a greenshoe and perfectly legal.
It's a greenshoe and perfectly legal.
There is nothing special about this, it's simply the limit orders at the issue price for the greenshoe shares built into the IPO.
The banks won't lose anything from propping up the price, they were using greenshoe shares which are built into most IPOs underwritten these days.
Greenshoe's make stabilization of the issue price a risk-free endeavor for the underwriter.
The less time planning, the more time programming.