Tesla Prices IPO At $17 Per Share

Re:Tesla Prices IPO At $17 Per Share by eru on Tuesday June 29, 2010 @03:48AM (#1470747)

I don't really get why anybody plans any IPO prices. Shouldn't auctions be the best tool for the current owners to get as much money as they can?

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Re:Tesla Prices IPO At $17 Per Share by ars on Tuesday June 29, 2010 @04:30AM (#1470817)

They actually are auctions, just not public ones. Silent auctions, where the bidders communicate privately with the seller.

The buyers set a price they will pay, possibly a price x number of shares matrix.

Then the company picks a price to maximize the amount brought in.

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Re:Tesla Prices IPO At $17 Per Share by eru on Wednesday June 30, 2010 @05:15PM (#1476266)

But why did the share price then go up on the first day after the IPO? (And why does it tend to do this for a lot of companies?)

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Re:Tesla Prices IPO At $17 Per Share by eru on Wednesday June 30, 2010 @07:56AM (#1474548)

Yes, more or less. But you often see shares go up by quote a lot on their first day. That should not happen.

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