The fact is, few buyers are willing to take on the IPO stocks of unknown technology companies.
"Clearly Facebook drove the acceptance of the market, " accounting for a majority of recent trading in pre-IPO stocks on exchanges, says Christopher Yang, who specializes in technology at Grove Street Advisors LLC, a Millennium investor that advises pension funds on venture investing.
Google pioneered this type of IPO for tech stocks way back in 2004.
Yes, of course, the big thing in both tech and stocks is the upcoming Facebook IPO.
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ConnectOne, which is up 12.5% from its IPO price, is part of another trend in the IPO market: an appetite for financial stocks.
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Hong Kong spent heavily to promote the issue and also offered such goodies as a 5% discount to the market value of the stocks in the ETF at the ipo (so investors got, in effect, an immediate 5% gain).
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However, the logistics of short selling an IPO make it a trickier affair than shorting other stocks.
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.
Almost all of the 30-odd stocks on the new bourse are trading below their IPO price.
The Williams grad and protege of legendary investor Julian Robertson set out on his own in 2001, prospering on well-known technology stocks such as Apple and Priceline as well as pre-IPO shares in Facebook and LinkedIn.
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On Thursday stocks reversed course to provide upside on the heels of the successful IPO for General Motors ( GM).
The Facebook IPO, once heralded as a rare opportunity to coax the public back into stocks, has done exactly the opposite.
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Investors' appetite for risk is growing again, he said, noting U.S. stocks are attracting more investor interest and that is filtering through the IPO market.
Stocks tumbled in the third quarter, a recipe for trouble in an IPO market that leans heavily on an appetite for equities as an asset.
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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.
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Stocks are looking to rebound from a prolonged correction exacerbated by an extremely lackluster Facebook (FB) IPO.
The occasional IPO or corporate stock benefit might come their way, sure, but mostly they own bread-and-butter stocks and bonds like everyone else.
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