Fernando, Chitru S.; Krishnamurthy, Srinivasan; Spindt, … - Financial Institutions Center, Wharton School of Business - 2002
When firms go public in an IPO, they must choose a number of shares to offer and a price level for those shares. Given an estimated total value, this division would seem to have little economic significance. Casual empiricism and the evidence from stock splits, however, suggest that firms do not...