Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Michael A. Gottesman who wrote (1723)	11/20/1997 12:07:00 PM
From: Mike Winn	Respond to of 60323

I have the same question too, Mike G. In an IPO, the underwriters sell the shares to the preferred customers, i.e. institutions, customers with lots of money, etc., and those preferred customers turn around and sell to the retail customers for a quick profit. Like Netscape offered the stock, I think, around $20, but the stock opened at $40, so the preferred customers made $20 instantaneously. Is it the same for the secondary? The volume is very low today and at this rate, it will take a couple of weeks to sell the 3 million shares. What surprises me is the stock is moving up slightly, so it doesn't seem like the underwriters are desperate yet. If the 3 million shares are already owned by the institutions and preferred customers, and they decide to keep it, then this is not a bad sign. The underwriters are also in the "quiet" period and cannot upgrade the stock until the secondary is complete. Anybody understands the mechanism of the secondary? Mike W.