Open Question
So.
All these secondaries.
Never paid attention to this before but wondering what happens on the secondary
if the stock is not at the proposed secondary offering price - is the secondary
shelved or do they drop the price?
Thanks.
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Can the broker-dealer, a couple of days before presuming the secondary is not
fully subscribed as the stock is about 20% below the planned offering, lower the
price of the secondary or are they obligated at the offering price and will
withhold it from the market not to take the loss?
Thanks.
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It is an underwriting. The broker-dealer buys stock from the issuer at the
secondary price. If the BD can't sell stock to the public they own it and take
the risk.
Answered by Scott Rothbort / Lake View Asset Management, LLC
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