Is It Possible to Generate an Income Through the Sale & Buying of Shares of Companies That Went Public? Evidence from BIST

Bekir Elmas
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Bekir Elmas: Atatürk University

Journal of Finance Letters (Maliye ve Finans Yazıları), 2013, vol. 28, issue 99, 39-58

Abstract: The general purpose of the investors who invest in stock certificates in the stock exchanges is to earn an income by means of the sale and buying thereof. In this study it has been inquired whether an investor who has bought the shares of a company, which went public in the Borsa Istanbul (BIST), at the phase of book building and sold them on the first day of transaction generates any income. A total number of 227 companies which have went public in BIST between 1995-2010 have been included in the scope of the study in order to find an answer to that question. Analysis has been carried out seperately for all companies, sectors and sub-sectors. It has been found out that an investor who had bought the shares of a company at the phase of book building and sold them on the first day of transaction had earned an average return of 8.8 %. The rates of return for the industrial, information and other group of sectors have been established as 8.8 %, 6.7 % and 5.9 % respectively.

Keywords: Initial Public Offering; Ring-Opening; Low Pricing Anomaly (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:acc:malfin:v:28:y:2013:i:99:p:39-58

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