Firm-commitment offerings in the U.S. are characterized by offer prices conditioned on information gleaned fromindications of interest solicited from prospective investors. When such information can be used to persuade some investors to purchase shares at a price in excess of their initial...

Examines the use of price stabilization and penalty bid provisions in primary equity markets. The model created in this analysis is based on the assumption that an underwriter represents the firm, the firm is issuing a fixed claim on its future cash flows, and there are two distinct pools of...

In this study, we examine the relationship between the liquidity of equity and its market value. We find that creating liquid equity claims on relatively illiquid property assets increases value by 12-22%. However, the fixed costs associated with creating these claims offset these liquidity...