An extreme example is the fanaticism ”

[mstakh.i.mo.mi]

Historically, the pricing of many first-time public offers has been underestimated. The effect of underpricing is to generate additional interest when the stock first public transaction and cause the stock price to rise rapidly （ to be called flow. Stocks speculation or rapid sale of stocks for profit can bring considerable benefits to investors who distribute stocks at the issuance price. However, too low pricing will cause the issuer to lose potential capital.


of the Internet age in the late 1990s. Underwritten by Bear Stearns on dentist database November 13, 1998, the IPO pricing was $9 per share. On the day of the opening, the stock price rose rapidly by 1,000%, reaching a high of $97. The sell-off pressure brought about by the organization's sell-off eventually led to the stock's fall, with a closing price of $63 that day.


Although the company did raise about US$10,000 from this issue, it is estimated that based on the level of demand and transaction volume of this issue, they may have more than US$200 million left. The danger of overpricing is also an important consideration. If the stock is issued to the public at a price higher than the market, the underwriter may have difficulty fulfilling its commitment to sell the stock.