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: What is an IPO?25 Views

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And finance allah shmoop What is an i p o

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Well this is a hippo and it has nothing to

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do with an ipo Auras Normal humans pronounce it if

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both well actually most people just spell it out I

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po It stands for initial public offering In the three

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words tell the story and i pl refers to a

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company who's raising money by selling shares of itself to

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the public for the first time a maiden voyage in

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public funding if you will Whatever dot com has forty

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million shares outstanding after three private rounds with venture capitalists

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and private investors it wants to raise money to go

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big internationally And for the first time it will offer

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shares to joe and jill public And that means that

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all of it shares will be tradable publicly on the

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open market like on nasdaq or the new york stock

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exchange That is the insiders early investors founders et cetera

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will be able to just call their broker at schwab

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or fidelity or wherever and sell their shares get liquid

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and buy themselves a maserati because it's not what everyone

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does after a nice meal So whatever dot com sells

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ten million shares a twelve bucks each to raise one

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hundred twenty million dollars which they can spend to build

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out offices all over the world So yeah that's an

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ai po and that's Why a company generally wants to

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make shares available to the public because once you've made

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an initial public offering and you make money off the

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sales of your stock you khun by as many hippos

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as you like and just remember to feed them three

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