Cycles in initial public offer (IPO) underpricing have been historically linked to both the proportion and pricing of resource-based IPOs issued relative to the entire population of IPOs. In addition, IPOs in the less diversified resource sector are exposed to changes in underlying commodity...

Existing trade-indicator models that estimate the components of the bid-ask spread of a common stock fail to utilize the trade flows in the options market as a potential source of adverse information. This paper develops a cross-market model to address this issue by introducing an option...