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The Informational Content of Initial Public Offerings / Ian Gale, Joseph Stiglitz.
- Format:
- Book
- Author/Creator:
- Gale, Ian.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w3259.
- NBER working paper series no. w3259
- Language:
- English
- Subjects (All):
- Capital market--Mathematical models.
- Capital market.
- Information measurement--Mathematical models.
- Information measurement.
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 1990.
- Cambridge, Massachusetts : National Bureau of Economic Research, 1990.
- Summary:
- The ability of capital markets to distinguish firms of different value by the size of their initial equity offerings is attenuated when insiders can sell equity more than once. A model is developed in which there is price risk from holding equity between periods. When the uncertainty is small. there must be pooling in the first period. When uncertainty is large. the pooling equilibria dominate the separating equilibrium.
- Notes:
- Print version record
- February 1990.
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