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Non-Tech : Wit Capital - The way of the future? -- Ignore unavailable to you. Want to Upgrade?

To: ChopChop99 who wrote (5655)	6/25/1999 11:47:00 PM
From: Kaliico	Read Replies (2) \| Respond to of 16809

Is there any rule an Underwriter has to allocate an allotment? I saw Etrade received something like 100K shares of About.com (formely Mining Co.) and did not offer to customers that i know of. Ok so Wit gets 48,000 shares allocates 8000 to customers, pulls in 1000 new accounts hoping to get it, then....sells 40,000 shares on the open market today( there are no restrictions as to when "they" can sell) at $100 for a profit of (40000x (100-34) ) = 2.56 million dollars (before taxes), nice chunk to add to their "war" chest. Wit/Etrade....As i have said many times before, IMHO, IPO's are the hook line and sinker to get new accounts, not stickin up for the little guy. This is Wall Street business. Welcome to the "shaft". Regards, MJY