In IPOs all initial investors have a common purchase price, and the disposition effect should thus be at its strongest. Turnover is significantly lower for negative initial return IPOs when the stock trades below the offer price. On a daily level, attaining new maximum and minimum stock prices also produces strong increase in volume.
In IPOs all initial investors have a common purchase price, and the disposition effect should thus be at its strongest. Turnover is significantly lower for negative initial return IPOs when …