4 Key Post IPO Dates Investors Should Take Note Of

While the secondary stock market is largely a free market where demand and supply for stock create a market price, initial public offerings (IPO) are different. After the initial price and size of the offering are set by the underwriting syndicate managing the IPO, there are several legitimate methods that brokerage firms underwriting the IPO use to restrict additional supply of shares, which would be a drag on the stock price. Oftentimes, after these restrictions are lifted, the stock price takes a step down. As a result, IPO investors should mark these key post IPO dates on their calendars, when an IPO stock's price could face downward pressure. Read more here...