It has been reported this week that new legislation is being introduced that would revise The 1964 Securities Acts Amendments which held companies with at least $1 million of assets and 500 shareholders to the same mandatory disclosure requirements as the 1934 Act imposes on securities traded on the major stock exchanges. The proposed revisions, […]
It’s Beginning To Look A Lot Like 1995
Based on LinkedIn’s public debut today, my Bubbleometer detected the slightest silhouette of a bubble brewing – an inevitable consequence of public market trading. The stock which was issued at $45 reached $122.70 before closing at $94.25 on trading volume of 30.2 million shares. LinkedIn represents the first social media company to have come of age […]
Bubble, What Bubble?
With Facebook nearing an $85 billion valuation in secondary markets and Groupon rumored to go public at a $25 billion valuation, many economists, particularly those whose kitchens are wallpapered in Webvan stock certificates, are already rushing into bubble banter. After much investigation and a brief history refresher, I have reunited with my old college friend, […]
The Current IPO Landscape and the Vital Role of the Secondary Marketplace: Size Does Matter – Except If You Are Chinese
A few weeks ago I wrote an article titled, “Yes, Size Does Matter – The Current IPO Landscape”, in which I highlighted the most pressing issue affecting today’s IPO environment – the blatant bias towards the large cap company. I was inundated with emails from readers with questions such as, “Do we really live in […]
Yes, Size Does Matter – The Current IPO Landscape
I’m sorry to relay this, guys, but yes, size does indeed matter, particularly if you are planning on going public. The discouraging reality is that, just like my old college friend, Jill, today’s IPO market kowtows to the well-endowed. The average deal size in 2010 grew to $251M – quite a disparity from 20 years […]