Yahoo Answers is shutting down on 4 May 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Alibaba ipo?
Alibaba shares are expected to start trading in early September after Labor Day. How much do you anticipate each share starting out at? Is there a certain strategy experts use when IPOs first start such as waiting a while for the price to level out? What is your long term prognosis for this stock? Thank you.
2 Answers
- 7 years agoFavourite answer
An IPO price (company valuation) is determined based on the bank that is underwriting it. An underwriting bank tries to issue the shares at a price that reflects the value of the company. If the bank values the company too low, large profits go to investors as the stock price jumps when trading begins causing the company to lose out on money. However, if the bank overvalues the company, the company will make extra money and investors end up the losers as they will sell the stock as no one wants to invest in a company they feel is overvalued. Hype or not, a successful IPO should stay relatively flat.
- ?Lv 47 years ago
How a high-hype IPO like Alibaba, expect the first few days to rocket like Pollo Loco's.
After that week or two, it may start to even out, so sell if you made a gain.
