An initial public offering that appeals to many investors and for which there is great demand. Hot IPOs are often oversubscribed - meaning market demand far exceeds the supply of shares - which results in the stock price surging as soon as it is offered on the market.

The late 1990s saw one of the hottest IPO markets ever. There was so much demand for internet stocks that nearly all of them were oversubscribed, leading to substantial gains during the first days of trading. For example, saw its stock rocket 325% in a single day from an IPO price of $16 to $68/share. Because hot IPOs are in high demand, underwriters usually offer those shares to their most valued clients.

Investment dictionary. . 2012.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • Hot Issue — An issue that sells at a premium over the public offering price on the first day of trading. A hot issue is most often association with an initial public offering (IPO), in which the stock of the newly offered company is in great demand, causing… …   Investment dictionary

  • Hot equity periods — In the study of financial markets Hot equity periods or Hot Issue Periods are periods of time in which many firms perform initial public offering of their equity. Firms in modern economies often finance themselves by the issuance in public… …   Wikipedia

  • Hot debt periods — In the theory of corporate finance, the name of Hot debt period is given to periods of time when new debt issues by corporations are very common, and generally coincide with periods in which the interest rate is low, and the risk premium on… …   Wikipedia

  • Initial public offering — (IPO), also referred to simply as a public offering , is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large… …   Wikipedia

  • Friendly Hands — A nickname for investors in an IPO who will likely hold onto the security for a long time. Friendly hands alludes to IPO subscribers who are not interested in purchasing the new issue with the hopes of quickly flipping the shares for a quick… …   Investment dictionary

  • Tim Hortons — Infobox Company company name = Tim Hortons Inc. company company type = Public (TSX|THI, nyse|THI) foundation = flagicon|Canada Hamilton, Ontario (1964) location = Oakville, Ontario key people = Paul D. House, President, Don Schroeder, CEO and… …   Wikipedia

  • Soft dollar — The term soft dollars is used to describe certain payments made by institutional investment funds to their service providers. In contrast to hard dollars (actual cash), which have to be reported on the fund s books, soft dollars are incorporated… …   Wikipedia

  • Global settlement — The Global Settlement was an enforcement agreement reached on April 23, 2003 between the SEC, NASD, NYSE, and ten of the United States s largest investment firms to address issues of conflict of interest within their businessesCitation | title =… …   Wikipedia

  • French auction — A French auction ( Offre à Prix Minimal , formerly Mise en Vente ) is a uniform price auction used for pricing initial public offerings in France.In this offering, the firm announces a minimum (reserve) price. Investors place sealed bids for… …   Wikipedia

  • Stock market bubble — A stock market bubble is a type of economic bubble taking place in stock markets when price of stocks rise and become overvalued by any measure of stock valuation. The existence of stock market bubbles is at odds with the assumptions of efficient …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”