Moral Hazard and the Initial Public Offering

My colleague Christine Hurt wrote a paper, the Moral Hazard and the Initial Public Offering, which is now available on Westlaw at 26 cdzlr 711. You can also download an earlier version from SSRN. Christine takes a critical look at the IPO process and persuasively argues that IPOs are a sophisticated pump ‘n’ dump scheme designed to accrue value to the investment banks and institutional buyers at the expense of buyers in the open market. For anyone involved in the IPO process (or just curious), I highly commend the article.