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View Diary: Goldman Sachs & Bain Capital are in Deep Pooh Pooh This Time? (61 comments)

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  •  Balto, if you are going to defend bad faith - do (0+ / 0-)


    the share price is set by how much Goldman Sachs gets commits for. They had offers to buy at higher prices and set the price low - with a CONTRACT that said they would only make $1.5 per share commission.

    By doing the "spinning" and making - ILLEGAL - back door deals with "friends" to spin/split the money 50/50 - that the "friends" made

    they were engaging in a Conflict of Interest - self serving - at the direct detriment of their client (eToys).

    A fact I was able to prove - UNTIL - their (secret) law firm asked for - and Received

    Permission to Destroy the Books & Records

    Mitt Romney was CEO of Bain until Aug 2001. Proof of Bain & Romney Fraud

    by laserhaas on Tue Mar 26, 2013 at 01:37:53 PM PDT

    [ Parent ]

    •  again...I am not commenting... (0+ / 0-)

      on the fact pattern of your specific case.  However, unless this IPO was one in a million, I am positive the dollar value of the underwriters commission and the selling concession were not set until the offering price was determined.  

      There are always indications of interest to purchase a stock at a higher price.  So what?  

      The share price is, in my considerable experience,  set by figuring out how much demand there is for an offering, taking into consideration at what price you can generate significant follow-on demand, and then estimating what the fully distributed trading price is likely to be.   That is, the price the stock is expected to trade at when the offering process is fully resolved.   I use words like "estimating" and "likely" intentionally because you are discovering a price for something that has never had a price before.  Hence an art, not a science.

      Now of course "spinning" and other nasty things took place, and are now forbidden.  I am just trying to inform this group what a typical IPO process is like, and specifically why offerings are sometimes priced well below where they may trade the first day.

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