Such offsetting trades were done purely to reward the IPO-offering bank, the NASD said.
The fact of the matter is that both burn rates and overhang are higher for pre-IPO than post-IPO companies.
With IPO-stuffed coffers, Catcha is likely to become an even more formidable rival.
So it's fitting that IPO-related settlements and litigation are heating up again.
Many IPO-candidates have a lot of cash in the bank, Sanwal says, which will help them withstand the whims of the public market.
FORBES: Valuations Could Limit Venture-Backed Tech IPOs In 2013
At the time, I was in the midst of writing my dissertation at Columbia on what drives pre-IPO and post-IPO success in venture-backed firms.
FORBES: The Best Advice I've Ever Received About Hiring Talent
By 2011, as consumer Web IPO-mania grew in advance of the Facebook IPO, Mr. Mason began saying his goal was to make Groupon the Amazon.com Inc.
By 2011, as consumer Web IPO-mania grew in advance of the Facebook IPO, Mr. Mason began saying his goal was to make Groupon the Amazon.com Inc. of local commerce, bringing online the physical retail economy that other Web companies have tried to tap without success.
At CNN content partner Mashable, a blog that got its start focusing exclusively on social media and saw its popularity rise as Facebook's did, the staff geared up by creatin g an IPO-inspired playlist on music site Spotify (which, perhaps not coincidentally, is accessible only through a Facebook account).
It seems to me that the best way of seeing what the investment institutions are proposing is as a short cut to something that's not a million miles from an IPO - since these are exactly the kind of funds that would buy the shares in a stock market flotation.
Earlier this week, the post-IPO lock-up period expired for insiders holding 234 million Facebook shares.
FORBES: Cashing Out: COO Sandberg Sells $7.7M Of Facebook Shrs
"In an open-IPO auction--as its name implies--any qualified investor can open an account and bid for shares, " says Gregory Hartmann , Hambrecht's general counsel.
Facebook still faces enormous additional supply coming into the market as post-IPO lock-up agreements covering well over 1 billion shares expire in the coming months.
FORBES: Facebook THIS: Apple Hits New High; Mkt Cap Tops $600B
Groupon also said that it has extended the post-IPO lock-up period from May 2 to June 1, which pushes the period past a planned earnings announcement on May 14.
Groupon is taking a lot of flak today for a pre-IPO S-1 filing that wishes away several hundred million dollars in marketing costs in order to claim something like profitability.
FORBES: If Groupon Is Right, Hyperlocal Sites Are In Trouble
In addition, publicly-traded stock post-IPO is a different sort of incentive vehicle than one pre-IPO, having virtually no liquidity.
Furthermore, although the JOBS Act specifically allows pre-IPO analyst research reports for EGCs, existing restrictions continue to prohibit pre-IPO publication or dissemination of research reports for EGCs until further SEC and FINRA interpretative guidance is issued.
FORBES: How A Shortage Of Analysts Is Hampering The IPO Market
He lured investors with promises of exorbitant returns in purported pre-IPO shares of well-known companies such as Facebook.
Over the summer, venture capital firm Emergence Capital looked at the post-IPO performance of business-to-business technology stocks versus those of business-to-consumer companies.
Tom Taulli is the author of How to Create the Next Facebook: Seeing Your Startup Through, from Idea to IPO and High-Profit IPO Strategies.
Michael Rollins, analyst with Citigroup--the bank that led Vonage's ill-fated IPO last year--wrote in a March 26 note that "failing to successfully address the patent infringement suits" could force Vonage into "a financial restructuring or bankruptcy" in one or two years.
To date, pre-IPO research has not taken hold, but the relaxation on sell-side research after the IPO has resulted in earlier and more regular analyst commentary on companies in the public market.
FORBES: On Its One-Year Anniversary, Two Cheers For The JOBS Act
Prior to the JOBS Act, sell-side analysts were prohibited from publishing research before the IPO, for 40 days after the IPO, and in the 15 days before and after lock-up agreements with pre-IPO stockholders and the company expire.
FORBES: On Its One-Year Anniversary, Two Cheers For The JOBS Act
Facebook (NASDAQ:FB) continues to perform extremely well since its most recent IPO lock-up expiration.
FORBES: Housing Gives Stock Market Lift, Greece And Fiscal Cliff Weigh It Down
Facebook (NASDAQ:FB) has been one of the strongest stocks in the market over the past three weeks following the expiration of an 800 million share IPO lock-up period.
FORBES: New Life For Apple, Facebook, Google As Walking Dead Start Running Again
Later that day, news broke of the IPO price-range boost.
WSJ: Morgan Stanley Was 'Driver' on Facebook's Wild IPO Ride
Early investors like Coleman were restricted from selling their Facebook shares until the middle of August, when some of those shares held by pre-IPO investors were released from lock-up provisions.
FORBES: Hedge Fund Star Chase Coleman's Facebook Trade Generated $1 Billion
Her big message in the Facebook IPO S-1 document is that the Web is still proportionately still a minuscule amount of advertiser spend per time spent on it compared to TV.
FORBES: Why The Higher Click-Through Rates for Mobile Ads Which Facebook Touts Mean Nothing
Maybe the boom will last another 3 years and new deals financed today will be able to go public and the investors will get to cash out after the IPO lock-up period ends.
FORBES: My First-Hand Impressions of the Chinese Tech Sector
应用推荐