IPOs Of The Smallest Companies Post Astonishing Failure Rates, But Bankers Still Win ...Middle East

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IPOs Of The Smallest Companies Post Astonishing Failure Rates, But Bankers Still Win
Credulous retail investors are the biggest losers, according to new research. By Brandon Kochkodin, Forbes Staff Last year, executives at Bay Area broadband company Actelis Networks felt a hankering to go public. They fixed their eyes on the Nasdaq prize. But there was a snag: their stock, restricted to employees and early investors, was below the $4-a-share threshold required to trade on the exchange. The quick solution? A reverse split. They lumped every 46 shares into a single share, and voila, a $4 stock. They picked Friday the 13th in May 2022, of all days, for their launch into the big time. What happened next is a textbook case, according to new research on microcap companies, defi

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