| Popis: |
This chapter describes the tasks and activities underwriters deliver as part of their services in the aftermarket following the offer of new securities. These services extend from the opening of the secondary market to the end of the lockup period. The chapter discusses the importance of these services for initial public offerings and other new securities without an existing secondary market. These services include price stabilization, executing the overallotment option, establishing liquidity for the new securities through market making, and providing information to investors through analyst coverage. The chapter supplements the information on mechanics with a discussion of the economic implications of these activities and a review of the empirical findings that support or question the theoretical propositions. |
