> Google's 2004 attempt during its IPO to distribute its shares more equitably via a "Dutch" auction led to a disappointing first day of trading and never caught on.
What's disappointing is that people see it that way, even though it worked exactly as designed. The whole point was to find a fair opening value that made a level playing field for all investors. By opening at a stable value, it did exactly that.
The experiment hasn't been repeated because the people making decisions prefer a model that gives them short-term profit, at the expense of the general public.
What's disappointing is that people see it that way, even though it worked exactly as designed. The whole point was to find a fair opening value that made a level playing field for all investors. By opening at a stable value, it did exactly that.
The experiment hasn't been repeated because the people making decisions prefer a model that gives them short-term profit, at the expense of the general public.