A Study On The IPOs Pricing Problem Based On Neural Network Theory

The substantiating of IPOs pricing is one of the most basic and important theme relative to the profit of the issuing firm and investors in the stocks offerings plan,and it also affect the stocks' real performance after coming into the stock market.If the offering price is too low,then not only it is difficult to satisfy the issue firm' s capital demand,but also it maybe injure the original shareholders' profits.If the offering price is too high,then not only it enlarge the underwriter' s issue risk with the issuing difficulty,but also it can enlarge the investor' s risk,and repress the investor' s subscribe the enthusiasm,in the end it will affect the money raising demand of the issuing firms.Therefore,how to scientifically substantiate the IPOs' price becomes a very important task for the issuing firm and underwriter,it shows the underwriter's ethics,while reflecting the whole market' s standardizationThe paper introduce and analyze the IPOs' modes and traditional pricing methods at first,and then due to the limit of the traditional pricing methods,proposing a new pricing method based on the neural network theory according to the market participants' concern,and finally providing a practical pricing tool with certain accuracy.