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To: H James Morris who wrote (57858)	5/22/1999 8:49:00 AM
From: tonyt	Read Replies (2) \| Respond to of 164684

>If the SEC ever cracked down on Wall Streets favoritism All the SEC has to do is question why an underwriter can be consistently off by 300% in pricing an IPO. The purpose of an IPO used to be to raise cash for the company, however it has now become a way for the underwriter and his selected clients to get fees. Two years ago it could have been argued that they did not really know how to price internet IPO's, but not today. It is riduculous that eToys was priced @ $20. eToys should have been priced at $50 to $60. I doubt anyone here will think otherwise, so why did the underwriter price it so low? Well, most, if not all of us realize it is so that the underwiter can get a 300% gain to add to their fees (and the SEC is worried about price fixing in fees? sheeech!), so that their clients will also get a 300% gain as a reward, and an incentive, to continue to do business with them, and finally so that the company's management can get paid (and also so that they can be induced to agree to such an arangement).