A STUDY ON SHORT RUN AND LONG RUN ANALYSIS OF IPOS LISTED IN 2007 TO 2011
Author: DR. JIGNA C. TRIVEDI
Category: Human Resource Management
Abstract:
IPOs are vital instruments for corporate to raise money from general public. It is considered that an IPO is the first sale of stock by formerly a private company. IPOs turn the private company into a public company. Paper tries to
investigate the short term return available to subscribers of IPO. It further tries to segregate the return available
to short term investors as listing day gains or intra day gains. IPO issued in the duration of five years, starting from
2007 to 2011 is taken as elementary base for computing the return and commenting on the performance of IPO.
Overall the reasons for high and low performance of IPO are discussed in the paper. The paper also tries to highlight
the return availed by investors who hold the shares allotted in IPO for a long term. The paper comments on the overall
performance of the IPOs in the long run.
Keywords: Average Return, Initial Public Offerings (IPOs), Intra Day Gains, Listing Gains, Return on Investment (ROI)
