A nice article about the under-pricing that usually occurs for IPOs (but didn't occur for FB).  With quotes from my dissertation adviser, Jay Ritter, and another excellent finance researcher, Jacqueline Garner (who's a friend of mine). Kid Dynamite doesn't feel a whole lot of sympathy for people who participated in the offering... My expectations for a huge first day pop were already tempered, but I kept my order for two reasons: 1) I was curious as to how retail...

My colleague, Bart, sent me this screen capture of yahoo finance at 4pm on Friday.   This is what price support looks like.

Felix Salmon talks about the Greenshoe, although he gets it slightly wrong (a rarity for Mr Salmon).  The Greenshoe is the option to sell an extra 15% of the issue, it isn't about shorting the issue.   The SEC allows the underwriters to take a naked short as they are making a market in the new IPO stock.  It is the combination of these two things where the financial magic happens (see my Friday post). From Twitter: Link From Business Insider: "ZUCKERS"