The strategy behind IPO pricing

Article Abstract:

Three groups of factors influence the pricing of initial public offerings (IPOs) of stock: analytical factors, psychological-political-philosophical factors, and market-investor factors. The latter two groups influence the pricing more than do the analytical factors. Evaluating IPOs is explained using two unconventional models: the mushroom model, which assumes companies must have a strong foundation to support growth, and the two triad models. The first triad model requires: (1) the issuing company to have proven quality, (2) the issue to generate excitement among investors, and (3) the issue to be well-priced. The second triad requires: (1) the issuing firm to be marketing-oriented, (2) the issuing firm to have adequate capitalization, and (3) the issuing firm to be motivated to succeed. The success of an IPO reflects the issuer's and the issue's ability to fulfill the models' requirements.

Finance, Prices and rates, Stocks, Corporations, Stock prices, Going public (Securities), Initial public offerings, Corporate finance

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Diversify to be full financial pro

Article Abstract:

It is traditionally difficult for risk managers to achieve advancement, but following certain guidelines can improve chances of promotion. Opportunities for risk managers include: learning more about treasury operations, cash management, and investments; getting an MBA; becoming involved in employee benefits; and developing good relations with upper management. In general, smaller companies provide risk managers with better chances for promotion, because of chances to extend responsibilities and reduced competition.

Career development

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Futures and options: at the exchange

Article Abstract:

The commodities futures industry has expanded into 'financial commodities'; for example, debt instruments, foreign currencies and stock indices. These offers affect option markets and prices. Financial futures and options are attractive alternatives for managing risks related to the volatility of interest rates. Risk management strategies using interest rate futures and options are discussed, and the role of the exchange and the exchange community are examined.

Analysis, Investments, Options (Finance), Financial futures, Commodity exchanges, Commodity futures, Board of Trade of the City of Chicago Inc.

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