Morgan Stanley brings good rays to the short term investors and upsets the online coupon corporation as it announces to be the savior of the company in case of failure of the IPO of Groupon. Till now in this season, all the Initial Public Offering for which Morgan Stanley has acted as the prominent underwriter have all flourished on their opening day as it is indicated that the stock of the company has been set at a very decent price.
Though the investors have always been excited by the huge profits on the shares and sorting quick, the huge leaps on the opening day is usually proves unprofitable for the company as it succeeds in raising lesser cash that it would have estimated and anticipated to have.
Morgan Stanley has been the underwriter for LinkedIn, Yandex NV, Renren Inc of China’s Facebook in the past and all three of them have had a grand opening day with trade worth double the entire month’s trade, 55% and 30% upsurges respectively on their first day of trading. But despite their soaring opening day profits, all the above mentioned corporations have seen a lot of downfall since their grand unveiling.
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