How does the issual of an IPO affect the price of older stock already traded onthe market?

Bachelor boy asked:


Assume the company already has stocks traded on the stock exchange. What effect will a new IPO issul hae on the price of the stock ?

Mathew

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Tags: Ipo Stock, Stock Exchange, Stocks

This entry was posted on Thursday, March 5th, 2009 at 10:55 pm and is filed under ipo. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “How does the issual of an IPO affect the price of older stock already traded onthe market?”

1. redwine Says:
   March 7th, 2009 at 6:16 pm

   what does your textbook say? it may offer a clue. I’ll give you a hint, your question is phrased wrong, there is on older stock if it is an IPO. tba

2. bala_msec2000 Says:
   March 10th, 2009 at 2:36 am

   the valuations of the company wil be compared wid the new company and if the price of the new company is higher then the share price of the old company will up and remember the price of the new offer is arrived base on the price of the existing companies and reputation of the new company

3. Tim Says:
   March 13th, 2009 at 10:29 am

   Ipo if you previously held 10 billion it cannot do another ipo if company already has publicly traded shares it essentially dilutes the additional 10 billion just laying around.
   Ipo if company has publicly traded shares after approval from shareholders which is required because it will actually retain its previous 10 billion with.
   Ipo if you previously held 10 billion with 100 per share price will relect that percentage ownership by giving you.

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