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The Economics And Implications Of An Intial Public Offering

Author

Listed:
  • Radu BORES

    (Stefan cel Mare University of Suceava, 720229, Romania)

  • Ana-Maria HLACIUC

    (Stefan cel Mare University of Suceava, 720229, Romania)

Abstract

This paper aims at providing insight into the mechanics of an initial public offering, for both companies prospecting the choice of financing themselves on the market as well as investors looking to build their portfolio. The study shows that for certain applications, getting finance through an IPO is a very compelling and flexible option for companies as well as provide valid opportunities for investors. For emerging market IPOs should be a tool for development aside from classic debt instruments, however potential investors need to be aware of risks and drawbacks associated with the decision to participate or underwrite in an IPO.

Suggested Citation

  • Radu BORES & Ana-Maria HLACIUC, 2016. "The Economics And Implications Of An Intial Public Offering," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(2), pages 1-29, July.
    • Handle: RePEc:scm:ecofrm:v:5:y:2016:i:2:p:29
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    File URL: http://ecoforumjournal.ro/index.php/eco/article/view/494/297
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    References listed on IDEAS

    as
    1. Volodymyr Babich & Matthew J. Sobel, 2004. "Pre-IPO Operational and Financial Decisions," Management Science, INFORMS, vol. 50(7), pages 935-948, July.
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    10. Fishe, Raymond P. H., 2002. "How Stock Flippers Affect IPO Pricing and Stabilization," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 37(2), pages 319-340, June.
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    13. Tim Loughran & Jay Ritter, 2004. "Why Has IPO Underpricing Changed Over Time?," Financial Management, Financial Management Association, vol. 33(3), Fall.
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