Study Of Initial Public Offerings Pricing Of Stocks

Initial public offerings refer to the sales of common stocks to the public at the first time. Offering pricing is the key during the over-all procedure. As usual, it includes two steps. The first is stock valuing and the second is to find the market price of stocks. To launch these two steps, there are two problems to deal with, namely, methods of valuing and offering styles. In this research paper, methods and styles are two basic questions. The author give a systematic analysis about initial stock pricing in China and other countries and conduct an empirical study to find factors which effect the stocks pricing of initial public offerings. Then we assess the effects of these factors. Based on these comprehensive analyses, some suggestions are provided about marketerization in offering pricing mechanism to provide some suggestions concerning the offering pricing in China.