We examine the price discovery process of initial public offerings ~IPOs! using a unique dataset. The first quote entered by the lead underwriter in the five-minute preopening window explains a large roportion of initial returns even for hot IPOs. Significant learning and price scovery continues to take place during ese five minutes with hundreds of quotes being entered. The lead underwriter bserves thequoting behavior of ther market makers, particularly the wholesalers, and accordinglyrevises his own uotes. There is a strong positive relationship betweeninitial returns and the time of day when trading starts in an IPO
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The mechanics of short selling are relatively simple, yet virtually no one, including most professionals, knows how to sell short correctly. In How to Make Money Selling Stocks Short, William J. O’Neil offers you the information needed to pursue an effective short selling strategy, and shows youith detailed, annotated chartsow to make the moves that will ultimately take you in the right direction.
From learning how to set price limits to timing your short sales, the simple and timeless advice found within these pages will keep you focused on the task at hand and let you trade with the utmost confidenc