It happens in whispers more than voices. That's the "talk."
There's an offering coming...probably an IPO. The price talk is coming from the capital markets team, the sales team, maybe a few well-placed bankers. The stock was gonna come public at $23. A few whispers about the IPO of Netscape and eBay and dozens of modern flavors wherein the stock zoomed up 100% on Day One. So the bankers and brokers are talking about $23, guiding the buy side buyers of those shares in mutual funds and hedge funds and fat family offices, but mumbling about a first print of $30...maybe $35...maybe even $40.
You want in? You want money? You wanna be rich, successful, powerful? Then you buy. Or don't. And just be a mediocre schlub like your milkman father.
That's how the price talk goes in the trenches of some gamey brokerages. And we play.
Related or Semi-related Video
Finance: What is a subscription price?3 Views
Finance allah shmoop what is a subscription price Well in
the old days you'd actually subscribe to these things They
were called magazines and they came on this stuff called
paper and there were tons of them Different focuses our
folks i of your fancy pants gardening people time and
lifestyle There was a set price if you wanted a
year These things you paid it while the term relates
in all things finances well In this sense a subscription
agreement applied directly to a new issue of shares from
a company or securities anyway raising money teo you know
pay off their new fleet of corporate jets are open
up china as a new market or for that pesky
lawsuit they got hit with for their products Apo supposedly
sticking teo certain types of skin So in this type
of offering offered preemptively to already existing holders of shares
a subscription agreement outlines the terms at which current investors
can invest in the new offering like fioretti ona hundred
shares of snail co The shipping company that vows to
send your packages slowly and carefully and they're trading and
i'll say eighty bucks each Well then that company might
have a rights offering in which current shareholders get the
right to buy new shares at say seventy seven bucks
each Well that's seventy seven dollar price is fixed as
the subscription price I'ii buyers of the incremental sale of
securities Get the right to pay seventy seven bucks for
them and they usually come in a discount to the
current market price So as the kind of sort of
semi guarantee that the full allotment of shares that the
company wants to sell well in fact actually be sold
to people who have already indicated that they like the
company or they wouldn't be holding the shares in the
first place And that goes true Ah even if those 00:01:42.119 --> [endTime] shares are sold very very slowly
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