The pricing of equity offerings

Claudio F. Loderer, Dennis P. Sheehan, Gregory B. Kadlec

Research output: Contribution to journalArticle

65 Citations (Scopus)

Abstract

Examination of 1,600 seasoned equity offerings reveals little evidence that underwriters systematically set offer prices below the market price on the major exchanges, though they may do so for NASDAQ issues. Quick round-trip transactions in seasoned offerings are not profitable, but subscribing to an offering and holding the stock for 30 days seems to be very profitable, especially in the NASDAQ market. In addition to seasoned offerings, we analyze 250 issues of new classes of preferred stock. These issues are not underpriced.

Original languageEnglish (US)
Pages (from-to)35-57
Number of pages23
JournalJournal of Financial Economics
Volume29
Issue number1
DOIs
StatePublished - Mar 1991

Fingerprint

Market price
Pricing
Underwriters
Seasoned equity offerings
Equity offerings
Preferred stock

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics
  • Strategy and Management

Cite this

Loderer, C. F., Sheehan, D. P., & Kadlec, G. B. (1991). The pricing of equity offerings. Journal of Financial Economics, 29(1), 35-57. https://doi.org/10.1016/0304-405X(91)90012-9
Loderer, Claudio F. ; Sheehan, Dennis P. ; Kadlec, Gregory B. / The pricing of equity offerings. In: Journal of Financial Economics. 1991 ; Vol. 29, No. 1. pp. 35-57.
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Loderer, CF, Sheehan, DP & Kadlec, GB 1991, 'The pricing of equity offerings', Journal of Financial Economics, vol. 29, no. 1, pp. 35-57. https://doi.org/10.1016/0304-405X(91)90012-9

The pricing of equity offerings. / Loderer, Claudio F.; Sheehan, Dennis P.; Kadlec, Gregory B.

In: Journal of Financial Economics, Vol. 29, No. 1, 03.1991, p. 35-57.

Research output: Contribution to journalArticle

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