If this is a dumb question just ignore it.

vegasbabay · 1 If this is a dumb question just ignore it. Tue Jul 26, 2011 9:23 pm

vegasbabay

Equity Analytic

Posts : 39
Equity Stars : 4756
Reputation : 0
Join date : 2011-07-08
Age : 38
Location : Nugegoda

Can somebody sell below the IPO issue price and still make a profit?

xhora · 2 Re: If this is a dumb question just ignore it. Tue Jul 26, 2011 9:33 pm

xhora

Senior Manager - Equity Analytics

Posts : 498
Equity Stars : 5412
Reputation : 70
Join date : 2011-04-24
Age : 35
Location : Colombo

yes, if they received them for FREE !

e.g
Access Engineering distributed shares for their employees for FREE

micky · 3 Re: If this is a dumb question just ignore it. Tue Jul 26, 2011 9:35 pm

micky

Manager - Equity Analytics

Posts : 230
Equity Stars : 5144
Reputation : 18
Join date : 2011-02-04

vegasbabay wrote:Can somebody sell below the IPO issue price and still make a profit?

this is a very good question, u r really intelligent , that why u ask this question, u r a good observer, i am serious, only problem is u r not rich with information, new comers to cse should ask this question after few IPOs.

ipoguru · 4 Re: If this is a dumb question just ignore it. Tue Jul 26, 2011 9:35 pm

ipoguru

Senior Manager - Equity Analytics

Posts : 341
Equity Stars : 5327
Reputation : 25
Join date : 2011-03-02

vegasbabay wrote:Can somebody sell below the IPO issue price and still make a profit?

:lol!: if you selling price is higher than buying price (make provisions for brokerage) you get profit right.
So if you buy below IPO price you can still sell below ipo price and get profit... I think you know that in private placements big shots get shares far below than the IPO price...

wis · 5 Re: If this is a dumb question just ignore it. Tue Jul 26, 2011 9:47 pm

wis

Manager - Equity Analytics

Posts : 253
Equity Stars : 5261
Reputation : 103
Join date : 2011-02-01

There can be many investors who own part of a company before it has gone public or even gone for private placement. Even if the private placement was at the same price as the IPO price, those original investors could have been holding the investment for many years before that.

stumpy · 6 Re: If this is a dumb question just ignore it. Tue Jul 26, 2011 9:54 pm

stumpy

Senior Manager - Equity Analytics

Posts : 515
Equity Stars : 5695
Reputation : 51
Join date : 2011-04-29
Location : Colombo

Shit! just calculated average cost for PP ppl should be around Rs. 2-3/=

Does anyone have Private placement document of BIL?

vegasbabay · 7 Re: If this is a dumb question just ignore it. Tue Jul 26, 2011 9:59 pm

vegasbabay

Equity Analytic

Posts : 39
Equity Stars : 4756
Reputation : 0
Join date : 2011-07-08
Age : 38
Location : Nugegoda

This is embarrassing tongue

I shouldn't have asked this question geek

Haven't heard about this Private placement before.

Fresher · 8 Re: If this is a dumb question just ignore it. Tue Jul 26, 2011 10:05 pm

Fresher

Moderator

Posts : 1498
Equity Stars : 7522
Reputation : 163
Join date : 2011-02-04

if u had bought SHL below 20 and sold at 26, still; a good profit Very Happy

IPO price is 29/-

npc86 · 9 Re: If this is a dumb question just ignore it. Tue Jul 26, 2011 10:24 pm

npc86

Manager - Equity Analytics

Posts : 235
Equity Stars : 5174
Reputation : 39
Join date : 2011-02-24
Location : Colombo

ipoguru wrote:

vegasbabay wrote:Can somebody sell below the IPO issue price and still make a profit?

if you selling price is higher than buying price (make provisions for brokerage) you get profit right.
So if you buy below IPO price you can still sell below ipo price and get profit... I think you know that in private placements big shots get shares far below than the IPO price...

Agreed with ipoguru,

For foreign investors some of transaction may not be a big lost for them..Now some investors exit from this bear market by selling some counters which bought as long term some years back..!

banarahu · 10 Re: If this is a dumb question just ignore it. Tue Jul 26, 2011 10:41 pm

banarahu

Manager - Equity Analytics

Posts : 230
Equity Stars : 5120
Reputation : 18
Join date : 2011-03-16

one reason is private placement for lower price,

Other one is, good analyzers check the market behavior and sell it for collect again at lower price.

within final two hours, it is actually as a lost... Smile