Laddering

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Dictionary Says

Definition of 'Laddering'

The promotion of inflated pre-IPO prices for the sake of obtaining a greater allotment of the offering. Laddering is an illegal IPO practice in which the underwriter engages in the sale of IPO shares to clients with the implicit agreement that more shares will be purchased post IPO, leading to big gains for both parties. Once the price increases a certain level, "insiders" then sell their shares and take their profits.
Investopedia Says

Investopedia explains 'Laddering'

An underwriter will push up the issue price of an IPO through promotion, in order to please the issuer and secure a larger allotment. By agreeing to allocate additional shares to choice clients, the underwriter and clients can make big gains on the IPO shares, while the firm offering shares in the IPO are happy with the underwriter for creating increased market value.

 
Search results for

'Laddering'

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  • Climb The Bond Ladder To Higher Income

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    ... This is called laddering and it does a couple of things. First, it allows you to
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  • How To Create A Laddered CD Portfolio

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    ... produce cash flows. In this article, we will take a look at CD laddering
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  • Are CDs Good Protection For The Bear Market?

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    ... (Read more about the role of a broker in Full-Service Brokerage Or DIY?). CD Laddering
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    ... months. As rates rise, each of these bonds is then reinvested at the new,
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  • Bond Call Features: Don't Get Caught Off Guard

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  • Demystification Of Bank Accounts

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    ... or long term. Using a CD-laddering technique, you can help your money grow
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  • When and why did brokerages switch from fixed commissions to ...

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    ... saw deregulation as a chance to drop rates and increase his client base, which ran
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  • Bond ETFs: A Viable Alternative

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    ... (For more information see Boost Bond Returns With Laddering.). One disadvantage
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