Price Talk

  

Categories: Marketing

It happens in whispers more than voices. That's the "talk."

There's an offering coming...probably an IPO. The price talk is coming from the capital markets team, the sales team, maybe a few well-placed bankers. The stock was gonna come public at $23. A few whispers about the IPO of Netscape and eBay and dozens of modern flavors wherein the stock zoomed up 100% on Day One. So the bankers and brokers are talking about $23, guiding the buy side buyers of those shares in mutual funds and hedge funds and fat family offices, but mumbling about a first print of $30...maybe $35...maybe even $40.

You want in? You want money? You wanna be rich, successful, powerful? Then you buy. Or don't. And just be a mediocre schlub like your milkman father.

That's how the price talk goes in the trenches of some gamey brokerages. And we play.

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finance a la shmoop what is an underwriter Undertaker underwriter

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taking your company public well then you need one of these guys and yeah if [Woman writing at a desk]

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things go poorly well then you may need one of these guys but if things go well [Gravestone]

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company to that world you know hedge funds mutual funds private wealthy [List of benefits that come with an underwriter]

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investors such that they are the you know financial wind beneath your wings [Skyscraper flying away]

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for a brief moment in time the underwriter usually an investment bank

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like the vaunted Goldman Sachs or Morgan Stanley or JP Morgan or UBS or Sumitomo

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will actually themselves own whatever piece of your company you are bringing [Logos for the banks appearing]

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public like if you're selling 18 million shares at 20 bucks the bank's our

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underwriters take a new public will own all 18 million shares having paid you

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announcement he'll see in the digital paper is usually in the shape of a

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tombstone announcing everything why a tombstone well because it represents the

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