Bradley, Daniel J.; John W. Cooney Jr.; Dolvin, Steven D.; … - In: Financial Management 35 (2006) 1, pp. 5-29
We examine underpricing, long-run returns, lockup periods, and gross spreads for penny stock IPOs over the 1990-1998 period. We find that penny stock IPOs have higher initial returns than ordinary IPOs, but significantly worse long-run underperformance. We also find that penny stock IPOs have...
