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Compare the pre-IPO price, the offer price, and the post-IPO price. Explain why they are similar...

Compare the pre-IPO price, the offer price, and the post-IPO price. Explain why they are similar of different. (No calculations are required

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Answer #1

Pre IPO price : is the price at which the large private equity or hedge funds who are willing to buy large stake in the company.

Offer price is the price at which the shares are offered to be sold to the investors.

Post IPO  price : is the price that is determined by the demand of the shares by the investors. If the demand by the investors is less than expected , then the POST IPO price is low.

The Pre IPO price is the price before an IPO is announced, the offer price is the price at which the shares are offered to investors first time and after the launch of the IPO, the public demand determines the price of the shares.

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