Of all the things you can get mad about in the world, volatile prices for companies that have recently IPOed seems like sort of a silly one. Like, yesterday there was no market for this stock, and today there is, and tomorrow that market may have a price that is very different from today’s, and you’re mad about that? Something was created out of nothing! It’s magic! And you’re complaining about some bugs in that creation?
Speaking of magic, the Journal today has a cute story about the Indian stock market and how its IPOs are volatile. There is of course an implication of “… because of fraud” but it’s not clear how much more than an implication it is:
“There was a feeling in this country that many IPOs are manipulated,” U.K. Sinha, chairman of the Securities & Exchange Board of India, said in an interview.
Note the delicacy of saying “there was a feeling that IPOs are manipulated,” which means “IPOs are volatile,” versus saying “IPOs are manipulated,” which means “IPOs are manipulated.” He only said the first one.
Anyway here is Mr. Sinha’s entertaining solution: Read more »