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Price-Fixing in IPO Market?

Traders Magazine, May 1999

Brian Garrity

An analysis underscores well-publicized charges that investment banks fixed some initial public offering fees at seven percent. While underwriting fees have fallen across the broad equity market, the seven percent standard for small IPOs has never budged.

Of the more than 2,100 IPOs of less than $100 million priced in the last four years, only 177 were priced below 7 percent, according to Securities Data, a unit of Boston's Thomas Financial. (Thomas Financial is the parent company of Securities Data Publishing, publisher of Traders Magazine.)

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