THE MARKET'S PROBLEMS WITH THE PRICING OF INITIAL PUBLIC OFFERINGS
Roger G. Ibbotson,
is Professor in the Practice of Finance at the Yale School of Management, and President of Ibbotson Associates, a consulting firm based in Chicago. He is on the Advisory Board of this journal, and is an Associate Editor of Financial Analysts Journal.
is the Fred S. Bailey Memorial Professor of Finance at the University of Illinois at Urbana-Champaign. He is an Associate Editor of the Journal of Finance and the Journal of Financial Economics, and a director of the American Finance Association.
This article updates our “Initial Public Offerings,” in the Summer 1988 Journal of Applied Corporate Finance. It draws heavily on “Initial Public Offerings” by Roger G. Ibbotson and Jay R. Ritter in North-Holland Handbooks of Management Science: Finance and “Going Public,” by Kathleen Weiss Hanley and Jay R. Ritter, in The New Palgrave Dictionary of Money and Finance. We thank Prof. Hanley for permission to draw on material from this related work.