Georgetown University home page Search: Full text search Site Index: Find a web site by name or keyword Site Map: Overview of main pages Directory: Find a person; contact us About this site: Copyright, disclaimer, policies, terms of use Georgetown University home page Home page for prospective students Home page for current students Home page for alumni and alumnae Home page for family and friends Home page for faculty and staff Georgetown University Search: Full text search Site Index: Find a web site by name or keyword Site Map: Overview of main pages Directory: Find a person; contact us About this site: Copyright, disclaimer, policies, terms of use
Navigation bar Navigation bar
spacer spacer spacer spacer
border
spacer spacer spacer
border
spacer spacer

Allocation of Initial Public Offering and Flipping Activity

Aggarwal, R. "Allocation of Initial Public Offering and Flipping Activity." Journal of Financial Economics 68.1 (2003): 111-135.

There is a general perception that the large trading volume in initial public offerings is mostly due to “flippers” that are allocated shares in the offering and immediately resell them. On average, however, flipping accounts for only 19% of trading volume and 15% of shares offered during the first two days of trading. Institutions do more flipping than retail customers and hot IPOs are flipped much more than cold IPOs. Institutions do not quickly flip cold IPOs to take advantage of price support activities by the underwriter. Explicit penalty bids are rarely assessed against flippers.

» Obtain this publication

» More publications by Reena Aggarwal

spacer spacer
Navigation bar Navigation bar