"How to take the initiative?" Yu Dong asked.

"They should make a fuss about the pricing method. Under normal circumstances, the IPO pricing initiative lies in the hands of investment banks. The investment banks will agree on a price based on the prices of benchmark companies in the market and the needs of institutional investors. In this process

, investment banks have great power. As a result, some investment banks will consciously lower stock prices for their own interests to maintain their own business networks. After all, for investment banks, what they really serve is investors. Lowering stock prices,

Of course investors are happy."

"So what do you think Larry and the others are going to do?"

"It is very likely that a 'Dutch auction' will be used. The so-called Dutch auction is when the company announces the number of shares to be issued and the price range, and then investors submit orders based on this announcement and write down clearly what price they want on the order.

How many stocks are purchased, and finally the auction is conducted from high to low."

"Is this any different from an ordinary auction?" Yu Dong asked.

Jimmy smiled and explained, "There is still a difference. In a normal auction, the first bidder wins, and the price is based on the bid. In a Dutch auction, the first bidder buys first, but the final transaction price must be based on the price at which all stocks have been traded. For example

, Google wants to issue 100 shares, we bid 100 yuan and want to buy 80 shares, and another company bids 90 yuan and wants to buy 50 shares, then we can buy 80 shares first, but the transaction price is based on

It’s ninety yuan.”
Chapter completed!