PT  - JOURNAL ARTICLE
AU  - Theodor Tonca
TI  - Initial Public Offerings and Long-Term<br/>Performance
AID  - 10.3905/joi.2014.23.2.092
DP  - 2014 May 31
TA  - The Journal of Investing
PG  - 92--94
VI  - 23
IP  - 2
4099  - https://pm-research.com/content/23/2/92.short
4100  - https://pm-research.com/content/23/2/92.full
AB  - The initial public offer (IPO) market has come a long way since the very first public offering of shares by the United Dutch Chartered East India Company in 1602. Unfortunately, many of today’s IPOs suffer the same fate as the original IPO: They have an initial period of outperformance followed by a steady decline over the long term. This article explores some of the preliminary factors behind IPOs’ long-run losses and also explains why a value-based strategy outperforms higher-multiple issues over the long term.TOPICS: Security analysis and valuation, performance measurement