The pricing of equity offerings

Claudio F. Loderer, Dennis P. Sheehan, Gregory B. Kadlec

Research output: Contribution to journalArticlepeer-review

70 Scopus citations


Examination of 1,600 seasoned equity offerings reveals little evidence that underwriters systematically set offer prices below the market price on the major exchanges, though they may do so for NASDAQ issues. Quick round-trip transactions in seasoned offerings are not profitable, but subscribing to an offering and holding the stock for 30 days seems to be very profitable, especially in the NASDAQ market. In addition to seasoned offerings, we analyze 250 issues of new classes of preferred stock. These issues are not underpriced.

Original languageEnglish (US)
Pages (from-to)35-57
Number of pages23
JournalJournal of Financial Economics
Issue number1
StatePublished - Mar 1991

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics
  • Strategy and Management


Dive into the research topics of 'The pricing of equity offerings'. Together they form a unique fingerprint.

Cite this