HN user
Another huge looming problem: My emails were hacked recently with a fraudulent domain transfer using a fake ID. This exposes other accounts that use emails from the domain for recovery.
I lucked into some compelling evidence I'd like to share with any security experts that would be able to help me.
Just finished Big Short and it's good - like anything by Michael Lewis. It's the only thing I've read that completely tied together the hedge funds, the investment banks and AIG for me.
The reason for the underpricing is simple: it was the first big Dutch Auction IPO and when something is new, only the few will participate leaving the hesitant to jump in once it trades on the open market, bidding up the price.
This left the auction open to certain big institutions (Fidelity and another I forget) to badmouth the deal to lower the price while buying big themselves. Of course they were joined by the Investment Banks who really like that 7% standard IPO fee and felt threatened. And the press to whom everything is either an epic success or huge failure.
As a first, the deal also had many technical issues which lead to the August pricing and fed the negativity.
Anyway, the key win was that anyone (even a tiny investor like me) could buy in the IPO. Just try to get shares in any decent IPO run the normal way. If you do, it's likely to be a broken deal they couldn't find demand for and you'll most likely lose money at first trade.