The development of secondary market liquidity for NYSE-Listed IPOs

Deskripsi

For NYSE-listed IPOs, limit order submissions and depth relative to volume are unusually low on the first trading day. Initial buy-side liquidity is higher for IPOs with high-quality underwriters, large syndicates, low insider sales, and high premarket demand, while sell-side liquidity is higher for IPOs that represent a large fraction of outstanding shares and have low premarket demand. Our results suggest that incertainty and offer design affect initial liquidity, though order flow stabilizes quickly..Printed Journal