Hedge funds are sometimes forced to buy unprofitable IPO’s under the condition that they will be given opportunities to purchase hotter, more profitable IPO’s in the future according to the International Association of Small Broker Dealers and Advisors, 2006




That was a long time ago, so maybe things have changed — but probably not.




https://www.sec.gov/comments/s7-20-06/s72006-1.htm

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