Noob here: trying to understand the difference between the two. IPO Price is essentially for Investors (anyone who is early investors, friends & family) are the ones getting the IPO Price Open Trade Price: when the ticker gets listed for general public to trade, the price could be lower or higher depending on the interest created pre-listing the company. C3.AI - IPO range (36-38)$ but open for trading at 100$ DASH -IPO range (90-95)$ but open for trading at 102$ ABNB - based on this trend it could open to trade at (x2-3) of their IPO Price (56-60)$ The real winners are obviously the early investors, and IPO Price investors, general public who trading via their brokerages are already trading at a higher starting point ($) (if its hot IPO)? #personalfinance #investments TC 🥜
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Real winners are the banks leading the IPO. In Doordash example, banks bought the stock from the company for 90$ and now it started trading at 180$. https://www.cnbc.com/id/47099278 A bank or group of banks put up the money to fund the IPO and 'buys' the shares of the company before they are actually listed on a stock exchange. The banks make their profit on the difference in price between what they paid before the IPO and when the shares are officially offered to the public.
@jhgdtu, and @ urKN02, I agree with your comments. Essentially real winner to some extent is everyone who was able to get the $/share before the stock was opened for trading. Even if it tanks you will come out ahead and people who buy at inflated open market $/share go under.