A Companies IPO?
Tommye asks:
What determines the initial value of a stock at its ipo? How much per share for visa as an example?
What determines the initial value of a stock at its ipo? How much per share for visa as an example?
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The underwriter sets an opening price and then the open market takes over.
The underwriters try to get maxium value for the issuer of the IPO. It is more of a prediction than a science.
The underwriter sets the price, just to give you a piece of advice, if the stock is worth investing in the IPO than so many big players are going to want the stock that it won’t be possible for you and me to get any. Im told visa will be about 17 billion for the whole lot. If your looking for some more articles about how things work on wall street and general good articles to read about investing you should check out http://www.thewallstreethunter.com they have a pretty good free daily market update…
Good luck