When a Company Like Facebook Goes Public
Does the Facebook price saga indicate that individual investors should shy away from IPOs? Not necessarily. “For the most part, IPOs are usually underpriced. They tend to perform well in the first year of public trading,†says Shawn D. Baldwin, chairman and CEO of Capital Management Group, a boutique investment bank and research advisory firm in Chicago. Baldwin’s firm has participated in more than $68 billion in underwritings, including success stories such as Google, in which CMG was a co-manager.
