Stabsseminar ved Alex Stomper

Alex Stomper, Vienna University holder stabsseminar ved Institutt for foretaksøkonomi i morgen, fredag 4.mai.

03.05.2001 - Karine Stephansen Uldal

Tema er The first Day at a New Market: Nasdaq vs.Neuer Markt

Tid og sted:
Fredag 4. mai, kl. 1215-1330 i Karl Borch's Aud.

Abstract
This paper presents a comparison of the pricing processes of IPOs on Nasdaq and the Neuer Markt. The processes examined begin with the setting of an indicative price range, followed by the setting of the offer price at which the IPO shares are sold. The process then moves to the first day opening price and finally the first day closing price. While the two markets are quite similar there are differences in the timing and type of information released prior to setting the offer price and differences in the setting of the opening price. As a result there are differences on the two markets in the way that we interpret the prices posted at various stages in the pricing process and in how we predict profits that can be made by investing in any given IPO. Differences are also found across the two markets in the efficiency of the opening price. hich pieces of publicly available information affect the setting of the offer price, including information from the other market. Second we wish to determine the ``surprise'' in the offer price, that is the part of the adjustment from the range mean to the offer price that we cannot predict with public information. We posit that this surprise should be related to the information that was learned privately in the bookbuilding process.

Hans K. Hvide (9283)