Should IPO Investor Look For Long Term Or Short Term Gains?
In an April 13, 2010 Business week article, it was announced that the head of equities for TMX Group Inc., which operated the Toronto Stock Exchange and the TSX Venture Exchange, had high hopes for the Canadian IPO or Initial Public Offerings market and believed it could top CAD $6.4 billion for the year. He said this amount would be the highest in over a decade. The new issue pipeline reflected the belief that the recession is over as stocks and the economy rebounded. There is also a global push for increasing of listings on the Canadian equities market. This is exemplified by the example of the North Carolina based online publisher Lulu that chose to bypass the U. S. Stock exchanges and go public in Canada instead. Of course, the company CEO is no stranger to Canada having grown up in Canada. But the fact that only 2 companies went public in the US in 2009 might be a reason for this choice. It can be less costly to list a stock in Canada, which can involve a less regulatory scrutiny
