Who were in turn “flipping” the stock?
Yes. If you got the stock at $18 and sold it immediately, you could double your money. That was an asset, if you will. And the investment banks began allocating those assets to their friends. And that’s one of the practices that is being investigated today. Why was that bad for the companies involved? The companies got money in their IPO based on the [initial offering price of] $18. If the stock is immediately selling for $36, the companies could have gotten the difference, not friends of the investment banks. In a sense, the companies were being robbed. This wasn’t discussed in the press, but it was a huge issue with the management of these companies. Because, in a sense, suppose they took 2 million shares out at $10 a share. They get $20 million back less what they pay to the bank. But if the stock is selling immediately at $20 a share, they would have gotten $40 million for the company to use and have paid essentially the same fees. This is evidence of colossal wrongheadedness on th
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