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Strategies & Market Trends : Value Investing

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To: Grommit who wrote (36024)11/25/2009 10:53:24 AM
From: MCsweet  Read Replies (1) of 78666
 
All IPOs involve significant underwriting fees. The underwriting doesn't come for free. Recently, companies have amortizing some IPO fees into greater yearly fees, but basically always assume that someone is taking a good chunk off the top.

That it is why it is almost always a bad deal to buy a closed-end fund, BDC, or mortgage REIT on the IPO.

MC
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