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**RagonaCon** · 05-23-2012, 07:12 AM

Yes, same one - but they cleaned up some of the language.

In dollar terms, none - let's say (combined) the underwriters stumped up $500m on Friday to carry the stock, then dumped it Monday at $32 - the losses were lower than the revenue on the IPO itself and the trades (net/net maybe $90m or so).

So say, underwriters got the stock at $25, sold it at first for $38-42, and then when they had sold their allotment, dipped into reserve stock at current price (~38/39) to support the price? I have read the reserves came into play, is that above how?

05-23-2012, 07:12 AM	#78
RagonaCon Join Date Oct 2005 Posts 484 Senior Member	Yes, same one - but they cleaned up some of the language. In dollar terms, none - let's say (combined) the underwriters stumped up $500m on Friday to carry the stock, then dumped it Monday at $32 - the losses were lower than the revenue on the IPO itself and the trades (net/net maybe $90m or so). So say, underwriters got the stock at $25, sold it at first for $38-42, and then when they had sold their allotment, dipped into reserve stock at current price (~38/39) to support the price? I have read the reserves came into play, is that above how?
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