Mirant Corporation (MIR) Message Board

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Gold/Mining/Energy : Mirant Corporation (MIR)

MIR 23.83

+1.8%

Jan 2 9:30 AM EST

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To: Alex Chilton who started this subject	2/11/2002 11:36:54 AM
From: Softechie	of 903

Yahoo board: Re: Anyone wonder where Lehman has been by: mongil (55/M/Florida) 02/11/02 11:31 am Msg: 13246 of 13246 Actually, my understanding is that the underwriter usually shorts the stock at issuance in the amount of the oversubscription. This is supposedly done to stabilize the issue. If the price drops, the underwriter covers and profits from the spread, also helps to keep the price from falling more drastically. If the issue is successful and price climbs, he accepts the oversubscription and uses those shares to cover his shorts.

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