RE:RE:wildwood, share your wisdom
No, the underwriters do not want to "sink" the market, but they do have about a 6% margin to work with, so they can sell those extra shares that far below the offering price without losing money. And I have seen them do it many times.
That is what I was afraid would happen with SPE, as the offering didn't close until this morning. But why that was, I have no idea, as it ended up being over subscribed, which meant the underwriters didn't have to unload on the open market.
But if the offering was oversubscribed, why did it take so long to close the book on it? Are the underwriters playing games now?