Читать книгу Investment Banking For Dummies - Matthew Krantz - Страница 85

When IPOs fail, it makes investment bankers look bad. If shares of an IPO can’t stay above the offering price (the price at which the shares are sold to initial investors) it reflects poorly on the investment bankers. After all, if the shares were priced too high, that meant that the investors overpaid or the investment banker didn’t understand the business well enough. When a stock starts to trade on an exchange, such as the New York Stock Exchange, following the IPO that’s called aftermarket trading. If the price of the IPO, in aftermarket trading, falls below the offering price, it’s called a broken deal. Not good for investment bankers or investors.

And that’s why keeping a company on the right track, even after its IPO, is viewed as part of the responsibility of the investment banker. To be clear, the investment banker can’t do anything to change the way the company is being run — that’s up to the management team of the company. Still, there are levers that the investment bankers can pull to keep the IPO working for all parties, at least in the very short term.