Adequacy of Disclosure of Restrictions on Flipping IPO Securities

Authors

Royce de R. Barondes, University of Missouri School of LawFollow

Document Type

Article

Publication Date

Winter 2000

Abstract

This Article examines the implications of this practice under the disclosure obligations imposed by federal securities laws and concludes that the current disclosure is materially misleading, particularly in light of the failure to disclose the selective application of the penalties. Moreover, the selective application of the penalties casts significant doubt on whether these offerings can be considered “fixed price” offerings, which would mean that cursory disclosure of the practice would not suffice.

Recommended Citation

Royce de R. Barondes, Adequacy of Disclosure of Restrictions on Flipping Ipo Securities, 74 Tul. L. Rev. 883 (2000)