Beyond Meat Comes Back for Seconds
Also Overstock, hacking, hedge fund fees and hedge fund refunds.
Programming note: Money Stuff will be off tomorrow, back on Thursday.
When you buy stock in an initial public offering, you don’t know if you’re paying the right price. Sure you’re paying the price that everyone else is paying in the IPO, and sure that price is set by the IPO’s underwriters at a level where they see a lot of demand, and sure it is generally justified by some sort of financial analysis suggesting that the stock is worth that price. But the company is brand new to the public markets and there is generally no previous trading price, and sometimes the IPO price will just be wrong. You—and everyone else who buys the IPO shares—will pay $25, and the stock will open for trading the next day, and, on the open market with willing buyers and sellers, it will turn out that it’s worth $20. Oh well.