Stock Exchange: Company and Day

stock exchange: Of course, prices on that first day can be wildly different from the IPO price, as both the popular offerings for Beyond Meat BYND, 39.35% and Zoom Video Communications show ZM, 18.41% . But is that first day even a reasonable let alone reliable predictor of a company's performance From the perspective of a venture capitalist, an IPO is an important milestone in a company's journey, according to Market Watch. But it's also a weighing station in the middle not the beginning or end on the long road of building a lasting and successful business. Typically, this is the opening ceremony for when a private company starts trading on a stock exchange, so some of us will stay glued to the news coverage throughout the day, closely watching the ticker tape with the stock prices. So what to make of the IPO prices then, and of the headlines hyping their rise or fall Here's a little secret Pricing an IPO is way more art than science. Even the coveted pop where the price of the stock bounces up in the first day is somewhat orchestrated as part of the pricing process. This may seem counterintuitive given the focus on numbers and all the financial analysis involved, but the reality is that pricing an IPO involves trade-offs between the interests of the underwriters usually, investment banks ; the company selling its stock; and institutional investors. (news.financializer.com). As reported in the news.