Ever been to an auction or seen one, for that matter? If you have, you'd know that the auctioneer comes up with a starting bid price and keeps increasing it unless the richest guy in the room fixes a deal and the hammer is dropped. Anyway, have you wondered how does the auctioneer come up with a minimum bidding price? No, right? Don't you think they'd need to perform some procedures to come up with a bidding range? Well, they have to. The same works with IPOs.
about 2 months ago