IPO: Basic Academic Issues

Abstract

Authors: Dmitry Alexandrovich Kokorev National Research University The Higher School of Economics

A G Chistyakov National Research University The Higher School of Economics

This paper contributes to the literature on IPO by providing a review of IPO returns phenomena. We start with the underpricing issue that relates to the empirical evidence of a significant price increase immediately after the initial public offering. We continue with the literature on long-turn IPO returns and the reasons of IPO waves existence. Finally we prove that all of the above mentioned phenomena are closely interrelated.