How come Visa's IPO be available at $58 and not $44?

Hey guys, I still haven't got an answer this request for information regarding Visa's IPO price. It priced at $44 a share later Wednesday. However, the price that an individual investor could buy it for started at like $58 a share. Why is that? Do others(mutual fund companies, millionnaire investors) draw from first dibs? I'm confused about that. Also, one other cross-examine if I may. What is this premarket and aftermarket trading stuff? I thought stocks could only be purchased during the souk hours. I'd appreciate info. Thanks guys!

What is the best opening to bring...


Once it's on the market, the IPO is over, newly as if the IPO was five years ago. The IPO price doesn't business any more.

Once it's on the market, you can buy it for what somebody is predisposed to sell it for.

Return on investment (ROI) and dividends?


Only "select" investors get surrounded by at the IPO price - these guys are usually BIG clients (Mutual funds, institutions, really wealthy individuals) - of popular IPO's...hence the price discrepancy.

Pre/Post marketplace trading is usually done between institutions. They broker the deals themselves so there's no stipulation for the exchange.

Best,
John

http://www.tickerhound.com
"Where Investors Help Investors"

Has anyone attended an Inside Track property...



Answers:    The bookrunner on the deal created an instruct book for Visa before the IPO, polling institutional investors such as income funds, hedge funds, mutual funds, etc., within order to tilt as much money as possible for the number of shares offered. This set the price at $44. However, on the first day the stock be publicly traded, nobody was inclined to sell for smaller quantity than $58. Hence, it was lone available for $58.

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