Brace for a Robust IPO Market
One corollary to a bull market in stocks is a bull market in initial public offerings. Obviously, companies intending to raise capital in the public markets will want to execute deals after an extended rally, when investors are more willing to open their wallets and "pay up" for a better valuation. As the market rallies, the IPO pipeline normally fills and the pace of deals quickens.
This year, however, it's been more challenging to track IPOs as an indicator of future market strength, and that's due to the JOBS Act. One of the provisions of the Act is that companies can file "confidentially." This means the S-1 goes on file with the Securities and Exchange Commission and enters the review process, but is not made publicly available on EDGAR until the company elects to reveal its intentions -- or 21 days before the road show starts, at the latest....236 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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