google and the winner's curse (Note 1)
in the initial public offering of stock (IPO),
ralph lauren men, we can see the winner's curse of the place. IPO means that the decision \provide the opportunity to buy the company. In this case, potential investors the opportunity to buy the company. In such circumstances, potential investors will want to assess the company's market value of shares issued in order to avoid paying too much. Here google the company will introduce the pricing process, the winner's curse is how it happened.
google some of its stock for the auction, the stock sold to investors who share the highest bidder. submitted to the Securities and Exchange Commission registration instructions. google public warning of the winner's curse problem (the company warned: \was alert, paying the ultimate winner or a valuation of 10 times higher than the IPO price. winner's curse or the other, both for google IPO is inevitable. Any time there is the auction and bidding, winner's curse can occur. The researchers think that, like Tyco, WorldCom, a company like First Bank,
ralph lauren clothing, the absence of the lessons learned winner's curse,
ralph lauren polo sale, in the company's M & A process to pay too much. (Note 2)
So, how to avoid the winner curse it?
smart investors will bid through the shadow of the price set at their estimated value of the items under way to avoid the winner's curse. While investors who will reduce the possibility of winning the auction, but also successful auction to avoid excessive payments. wise investors know,
ralph lauren sale, if you want to pay a price higher than the original value of goods, they do not want to become a winner. For example, if before the auction, do you think google value of $ 100 per share. But, you know, if you are the ultimate winner of this auction, which means that most investors believe that google's value to less than 100 dollars per share (btw, someone google paid 300 U.S. dollars per share) fear winner's curse would scare off potential investors. auction site exempt from the need to protect the new payment mechanism other than excessive. (Note 3):
1, to provide more information about the tender things
2, may be looking rather more experienced investors to the scene
3,
ralph lauren shop, risk sharing. if the seller guarantees,
ralph lauren polo, investors will pay more.
Note 1, winner's curse refers to the auction process winner of the booty to pay too much money. In other words, an auction will be low in some people, some people will overestimate, and the winner is the most overvalued investors. Thus, unless the base price is undervalued a lot of things, or the winner would have to pay too much money
Note 2, such as the acquisition of Wing Lung Bank China Merchants to 4 times the net assets acquired. For example, the Chinese oil.
Note 3, the Commission what to do
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