You know it is funny that you would say that. But you have to look at it in the view of a company that needs to establish $$Dough$$. IPO's aren't for people like you and me to get an opportunity to make some cash. If you follow the market, IPO's have only been popular since around '92, when it finally became possible for guys like you and me to even get a piece of the pie. The whole idea of an IPO is to raise cash - and to try to hold on to it and keep the stock price up for as long as possible until it levels off. Any financial institution can be an underwriter for RedHat. Think its a coincidence that Goldman Sachs Inc.(One of the largest Underwriters out there), is backing them? Best believe the three underwriters are coming off with a sweet deal for their services. Well at least Goldman Sachs is. E*Trade probably got the short end of the stick just to have their name included for the advertising. Want to know why companies DON'T want people like you and me included in an IPO? Because they don't want it split up into a million different directions once the IPO is just coming out. Sure it sounds corrupt to favor the big boys who will by in blocks of 100,000 shares and up, but think about it, they have a deadline to reach for their shareholders to see that their interest is worth the investment. It is all about the worth of you company. The higher and quicker it rises, the more people will want to get in it later on. It is all about a company keeping afloat. Just look at companies like Donna Karen and you can see what I mean. As we speak, I am trying to get into this IPO because I think it is going to be the next Netscape in comparison, but let's not forget that after the IPO is over, if the turnout was good, there is still going to be a lot of momentum because of the name and success of the IPO. Even if it ends up at $35, it will still be worth it for the future. Look at Yahoo and Lucent.
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You know it is funny that you would say that. But you have to look at it in the view of a company that needs to establish $$Dough$$. IPO's aren't for people like you and me to get an opportunity to make some cash. If you follow the market, IPO's have only been popular since around '92, when it finally became possible for guys like you and me to even get a piece of the pie. The whole idea of an IPO is to raise cash - and to try to hold on to it and keep the stock price up for as long as possible until it levels off. Any financial institution can be an underwriter for RedHat. Think its a coincidence that Goldman Sachs Inc.(One of the largest Underwriters out there), is backing them? Best believe the three underwriters are coming off with a sweet deal for their services. Well at least Goldman Sachs is. E*Trade probably got the short end of the stick just to have their name included for the advertising. Want to know why companies DON'T want people like you and me included in an IPO? Because they don't want it split up into a million different directions once the IPO is just coming out. Sure it sounds corrupt to favor the big boys who will by in blocks of 100,000 shares and up, but think about it, they have a deadline to reach for their shareholders to see that their interest is worth the investment. It is all about the worth of you company. The higher and quicker it rises, the more people will want to get in it later on. It is all about a company keeping afloat. Just look at companies like Donna Karen and you can see what I mean. As we speak, I am trying to get into this IPO because I think it is going to be the next Netscape in comparison, but let's not forget that after the IPO is over, if the turnout was good, there is still going to be a lot of momentum because of the name and success of the IPO. Even if it ends up at $35, it will still be worth it for the future. Look at Yahoo and Lucent.