Search or ask a question

What is meant by a subscription period for an IPO?

Initial public offering

Best insight from top research papers

The subscription period for an IPO refers to the timeframe during which investors can apply for shares in the IPO. It is the period in which investors can submit their applications and make upfront payments for the shares they wish to purchase. This period typically occurs before the IPO is listed on the stock exchange. During the subscription period, investors are required to pay a subscription cost upfront, which is locked up for a certain period without earning any interest. The length of the subscription period can impact investors' opportunity cost of funds and their interest in the IPO. Factors such as the offer price, issue size, and market conditions can also influence the level of oversubscription during this period.

Answers from top 3 papers

PDF

Open Access

More filters

Papers (3)	Insight
Journal Article•DOI IPO underpricing in supply and demand framework: evidence from a market of retailers Ahmed S. Alanazi, Benjamin Liu, Haitham A. Al-Zoubi - Show less +2 more 21 May 2016-Applied Economics 8 Citations	The paper does not provide a specific definition of a "subscription period" for an IPO.
Journal Article•DOI Explaining over-subscription in fixed-price IPOs — Evidence from the Malaysian stock market Soo Wah Low, Othman Yong - Show less +1 more 01 Sep 2011-Emerging Markets Review 59 Citations	The paper does not provide a specific definition or explanation of a subscription period for an IPO.
Open access•Posted Content Determinants of the Underpricing of New Shares During the Subscription Period: Empirical Evidence from the Spanish Stock Exchange Consuelo Riaño, Francisco J. Ruiz-Cabestre, Rafael Santamaria - Show less +2 more 30 May 2006-Social Science Research Network 2 Citations	The paper does not provide a specific definition of a subscription period for an IPO.

My columns

Related Questions

What is subscription university?5 answersA subscription university refers to an institution where subscription costs for academic journals are a significant concern. Research indicates that university libraries face challenges due to rising journal subscription expenses. To address this issue, universities may need to explore alternatives such as outsourcing, secondary publishing markets, and enhancing information literacy. Additionally, the concept of subscription computing is relevant, where a package of hardware, software, and support services is provided as a service for building and maintaining a basic computing platform. Moreover, the development of online systems like the Online Refereed Researches Subscription System for academic institutions can streamline the process of managing research publication and subscription services. Such systems aim to enhance access to high-quality research and potentially generate additional income for universities.

How can newsrooms Find the Right Subscription Model?10 answersFinding the right subscription model for newsrooms involves addressing the multifaceted challenges and preferences of potential subscribers, as well as leveraging the unique opportunities presented by digital platforms. Research indicates that young non-paying news users are deterred by a lack of exclusivity, time-consuming subscriptions, and unattractive payment models, highlighting the need for more tailored and flexible subscription options. The long-standing experiment with digital transformations in U.S. newspapers suggests that adapting to technological advancements and changing consumer behaviors is crucial. Collaboration among news nonprofits and mainstream newsrooms can offer insights into sustainable models that prioritize community engagement and shared resources. Understanding the operational dynamics of newsrooms, such as those of Al-Jazeera Mubasher, can also provide valuable lessons in content delivery and audience engagement. The impact of paywall suspensions on subscription decisions underscores the importance of strategic content access to incentivize subscriptions. The COVID-19 pandemic has shown that local news sites that play an essential role in their readers' lives can leverage increased readership for subscription growth. Moreover, the comparison of news subscriptions with digital entertainment services like Netflix and Spotify reveals that younger audiences prefer flexible, value-for-money options that offer high-quality, reliable news. The challenges faced by local and regional journalism in sustaining their operations amidst the collapse of traditional business models call for innovative approaches to monetization. Studies on the effects of paywall activation for existing subscribers suggest that providing added value through cross-channel access can significantly improve retention and revenue. Finally, the pervasive use of metrics and analytics in newsrooms points to the potential of data-driven strategies in customizing subscription models to meet the diverse needs of the audience. In summary, finding the right subscription model requires newsrooms to embrace flexibility, offer value, engage with community needs, and utilize data analytics to understand and cater to the preferences of their audience.

What are the Benefits of subscription service?5 answersSubscription services offer various benefits to consumers. Firstly, they lead to a significant increase in customer purchases, with a large economic impact and persistent effects over time. Secondly, subscription services provide relationship benefits such as economic, psychological, customization, and social benefits, which positively influence trust, commitment, and satisfaction among consumers. Additionally, subscription options can be more profitable for firms, managing the trade-off between price and quality of service effectively, leading to higher social welfare and consumer surplus compared to pay-per-use options. Overall, subscription services not only enhance customer engagement and loyalty but also contribute to improved profitability and customer satisfaction through a combination of economic and non-economic benefits.

How customers engage with subscription model?4 answersCustomers engage with subscription models in various ways based on factors like email engagement, attachment theory, and customer preferences. Email engagement plays a crucial role in increasing customer retention and service consumption, impacting profitability differently based on subscriber levels. Attachment theory suggests that secure personal and consumer attachments influence attitudes towards adopting subscription services, emphasizing the importance of forming social bonds with customers. Additionally, customer preferences in India show a growing trend towards subscribing to entertainment services over traditional purchasing methods, indicating a shift towards subscription-based models for accessing personalized and enriching content. Overall, understanding customer engagement with subscription models involves considering factors like email strategies, attachment theories, and evolving consumer preferences.

Does undewriter prestige influence the level of subscription in IPO?5 answersUnderwriter prestige does influence the level of subscription in IPOs. IPOs underwritten by reputable underwriters have lower over-subscription ratios (OSR) compared to those underwritten by non-reputable underwriters. Additionally, underwriter reputation is negatively related to IPO first-day price range, indicating that IPOs underwritten by reputable underwriters have lower heterogeneity of opinion among investors. These findings suggest that underwriter prestige helps reduce information asymmetry and lowers the cost of IPO underpricing for issuing firms. Furthermore, the study by Hadass et al. found that venture capitalists increasingly used prestigious underwriters during the bubble years, which supports the corruption hypothesis that underpricing increases with the use of prestigious underwriters. Therefore, underwriter prestige plays a significant role in influencing the level of subscription and pricing outcomes in IPOs.

What are the subscription business model of iot?2 answersLow Power Wide Area Networks (LPWAN) such as SigFox and NB-IoT are popular radio communication technologies for IoT. IoT network providers offer subscription plans that include basic connectivity and complementary services like localization and edge computing. The pricing of these plans is studied using optimization and game models, helping providers make decisions on service inclusions and pricing. IoT revolution monetization can be achieved through improved customer matching, individualized offers, and outcome-based contracts. Collaborative efforts are needed to gather consumer data and understand context, blurring the lines between industrial and consumer IoT applications. Concerns for privacy and cybersecurity exist, but consumers are willing to exchange data for "free" services. IoT deployments require a clear business value and can be used for large-scale research and experimentation. The SmartSantander testbed facility in Spain provides a business model for IoT testbeds, attracting experimenters and supporting the development of new services. IoT platforms operate diverse business models, and a taxonomy of nine archetypes has been developed to analyze them accurately.

See what other people are reading

What do patents do for a start-up in tech?

Patents play a crucial role in the growth and success of tech startups. They act as signals of entrepreneurial success and milestones for further development. Patents can facilitate the trading of intellectual property rights, creating additional surplus and incentivizing innovations that would not be possible under trade secrecy, ultimately improving social welfare. Moreover, patents impact a company's performance and growth significantly, serving as valuable market value signals, especially for new and small firms. A strategic patenting approach can positively influence a tech startup's growth by contributing to higher funding, increasing the likelihood of receiving investments, being acquired, and even aiding in circumventing competitors' patents. Therefore, patents are essential assets that not only protect intellectual property but also drive innovation, growth, and competitiveness in the tech startup ecosystem.How does corporate tax planning paradigm and corporate governce paradigm?

Corporate tax planning and corporate governance paradigms are intricately linked. Corporate tax planning involves strategies to manage tax liabilities effectively, with some companies engaging in tax avoidance within legal boundaries. The relationship between tax planning and firm value is positively correlated, although the impact of corporate governance as a moderator is inconclusive. Business strategies influence tax planning efforts, with defenders less involved compared to prospectors, and financial expertise moderates this relationship in certain company characteristics. Additionally, the role of corporate governance characteristics in tax planning decisions is crucial, as smaller boards may be more risk-averse and less inclined towards aggressive tax planning strategies, potentially impacting the market value of firms. Overall, understanding the interplay between corporate tax planning and corporate governance is essential for effective decision-making and value creation.How does the thinly traded market affect the accuracy of time series analysis?

Thinly traded markets pose challenges for accurate time series analysis due to issues with expected returns calculation. In such markets, the commonly used market model often fails to meet statistical requirements, leading to distorted regression outputs. To address this, models with dummy variables separating company and market return relationships offer improved computation of expected returns, with the 3-state model showing promise. Additionally, the use of deep learning methods like Empirical Mode Decomposition, Principal Component Analysis, and Long Short-Term Memory networks can enhance prediction accuracy in time series analysis. Furthermore, causal analysis based on temporally shifted Pearson correlation can help discern causal connections in diverse time series data, including financial metrics and social media news streams, aiding in market prediction accuracy.Why are SME not going public in germany?

SMEs in Germany are hesitant to go public due to various reasons. Financial access limitations act as a significant barrier, with SMEs facing challenges in bridging the capital gap. Additionally, the structure of the German SME-focused platform landscape shows fewer platform ventures by SMEs, potentially due to high capital intensity and a preference for partnerships. The closure of the "Neuer Markt" segment in 2003 led to companies transferring to segments that better matched their characteristics, indicating the importance of suitable market segments for small companies. Furthermore, the German secondary equity market is fragmented, with a shortage of equity supply for small and medium capitalized companies, leading to under-informed shareholders and restricted equity supply for SMEs. These factors collectively contribute to the reluctance of SMEs in Germany to go public.How to develop work breakdown structure for CO2 EOR?

To develop a work breakdown structure for CO2 EOR, one must consider various aspects. Firstly, understanding the technical and engineering aspects of CO2 flooding is crucial. This involves assessing the incremental oil recovery potential, reservoir characteristics, and CO2 storage mechanisms. Secondly, incorporating economic aspects is essential, such as estimating capital expenditures, operating costs, and fiscal terms like tax rates and investment credits. Additionally, evaluating different CO2 EOR techniques like continuous CO2 flooding, CO2-WAG flooding, and CO2 huff-n-puff can provide insights into the project's scope and requirements. Lastly, considering risk-sharing mechanisms through contract types, like indexed price contracts, can help optimize decision-making and project value allocation. By integrating these technical, economic, and risk-sharing elements, a comprehensive work breakdown structure for CO2 EOR projects can be developed.What is entrepreneurial finance in Resource-Based Entrepreneurship Theory?

Entrepreneurial finance, within the framework of Resource-Based Entrepreneurship Theory, is fundamentally concerned with the identification, allocation, and management of resources critical for the creation, growth, and sustainability of new ventures. This domain of finance is distinct from traditional corporate finance due to its focus on overcoming the unique challenges faced by entrepreneurial firms, such as limited access to capital, higher risk profiles, and the need for strategic resource management to achieve competitive advantage. At its core, entrepreneurial finance involves a wide array of financing sources, including venture capital, angel investors, equity and debt finance, crowdfunding, and initial coin offerings. Each of these sources presents its own set of governance challenges, agency problems, and strategic considerations for entrepreneurs, who must navigate moral hazard, adverse selection, and the diverging incentives of different investors. The Resource-Based View (RBV) emphasizes the critical role of resources in creating entrepreneurial competence and value, suggesting that the mobilization and transformation of resources are instrumental in the entrepreneurial process. The theoretical underpinnings of entrepreneurial finance in the RBV context highlight the importance of financial intermediaries, such as venture capitalists, not only as providers of capital but also as critical resources themselves. These intermediaries can significantly influence the growth and development of a firm by providing strategic advice, facilitating network connections, and helping in overcoming the informational asymmetries and market frictions that often hinder entrepreneurial ventures. Moreover, the dynamic nature of entrepreneurial finance is captured in the search and matching process between entrepreneurs and capitalists, which is crucial for the financing of innovation and the realization of entrepreneurial opportunities. In summary, entrepreneurial finance, from the perspective of Resource-Based Entrepreneurship Theory, is an intricate field that extends beyond mere financial transactions. It encompasses the strategic management of resources, the navigation of complex investor relationships, and the pursuit of innovative financing mechanisms to support the entrepreneurial ecosystem.What is the correlation between environmental factors and financial performance in various industries?

The correlation between environmental factors and financial performance varies across industries. Studies on Indian manufacturing companies found a positive association between environmental performance and financial performance, with a moderating impact of research and development expenditure. Conversely, research on heavy polluting industries in China indicated a negative relationship between environmental performance and financial performance, suggesting that improving environmental performance does not necessarily enhance financial outcomes. In contrast, a study on heavily polluting enterprises in China highlighted a significantly positive relationship between environmental performance and financial performance, with industrial concentration moderating this association, especially in non-state-owned enterprises. Additionally, research on food firms globally revealed that environmental performance positively influences sales, particularly in lower-middle-income and upper-middle-income countries, while also impacting internal funds in certain regions like Africa.What does a fixed consumer group have to do with the brand's SCA?

A fixed consumer group, as seen in group aggregation leveraging methods, can impact a brand's Sustainable Competitive Advantage (SCA). This is because consumers within a fixed group can collectively influence purchasing power and product demand, potentially leading to increased brand loyalty and market share. Additionally, understanding consumer consumption collectives, such as tribes and brand communities, is crucial for adjusting marketing strategies according to individual consumer memberships. Furthermore, in community group-buying platforms, interactions between group-buying leaders and consumers play a vital role in establishing long-term relationships and customer lock-in, ultimately contributing to the brand's SCA. Research also suggests that presenting price information in a fixed format, rather than through discounts, can enhance consumers' perceptions of product quality and value, which can positively impact a brand's SCA.What is transparency in financial reporting?

Transparency in financial reporting refers to the extent to which a company's financial statements provide clear, accurate, and comprehensive information to stakeholders. It involves disclosing relevant data about the company's financial performance, position, and risks, aiming to reduce asymmetry of information, prevent financial fraud, and enhance corporate governance. Assessing transparency involves evaluating the volume and structure of disclosed information, access to data, and the accuracy of presented information. Studies highlight the importance of transparency in reducing risks of accounting information, empowering decision-making processes, and fostering trust among investors. Enhancing transparency requires companies to disclose historical, current, and future information related to their activities, ensuring stakeholders have a clear understanding of the company's financial health and prospects.What are the measures for financial sustainability?

Financial sustainability can be measured through various indicators and models. One approach involves using financial indicators like distributed profits, retained earnings, fixed assets, total assets and liabilities, financial return, and profits before interest and taxes, as seen in the research on real estate companies in Jordan. Another method includes assessing conditions such as firm growth, survival ability, earnings risk exposure, and earnings risk profile to determine financial sustainability, which has shown to lead to excess returns in the capital market. Additionally, the relevance of financial sustainability measures to earnings management has been highlighted, with factors like liquidity, leverage, and efficiency ratio impacting the level of earnings management in companies. These measures collectively contribute to evaluating and ensuring the financial sustainability of businesses.How navps Have positive impact on stock price?

The Net Asset Value Per Share (NAVPS) can have a positive impact on stock prices through various mechanisms outlined in the research contexts. Studies have shown that expansive monetary policies, including increases in money supply and decreases in interest rates, can directly boost share prices. Additionally, the National Pension Service's (NPS) trading behavior, particularly in relation to market impact costs, can influence stock prices, with sell orders incurring higher costs and potentially leading to negative impacts on stock prices. Understanding the effects of monetary policies, such as liquidity relationships with stock returns and prices, is crucial for investors and policymakers to navigate stock market dynamics effectively. Overall, the NAVPS, influenced by monetary policies and trading strategies, can play a significant role in driving positive movements in stock prices.