Cheap Stock

Cheap Stock

The practice of issuing stock in a company at too low a price immediately before an IPO. Generally, the cheap stock is offered at only a small fraction of the company's expected share price after the IPO. An underwriter may offer cheap stock in order to attract investors who might make a quick profit from the company or to potential managers in the company. Offering cheap stock is illegal.
References in periodicals archive ?
It's a very cheap stock," said Hashem Ghoneim of Pyramids Capital.
It's a cheap stock that looks like it's going to stay cheap," he said.
The latest issue meant Mr Mandelson had to balance the needs of retailers in countries like the UK and Denmark - which outsource shoe production to Asia and buy in cheap stock - with the needs of producers in countries such as Italy, France and Spain, where shoe making continues.
But much of the impact of foot and mouth on the sector has been felt as restricted supply rather than cheap stock, provoking complaints from major retailers.
Frequent protests, violent riots, airport blockades and three changes in government in the past 19 months have dented consumer spending, economists say, but the prospect of prolonged strife is already priced into Thailand s relatively cheap stock prices.
Once again, Pan American Silver is not exactly a cheap stock.
He believes the biggest problem faced by importers and specialist dealers this year will be in deciding exactly how much fresh cheap stock to bring into the country.
They rationalized that they could buy more shares of a cheap stock with their money, but not all cheap stocks are good values.
At a Time When Cheap Stock Photography Floods the Web, the Legendary New York Photographic Agency Explains Why Sometimes There is No Substitute for a Quality Assignment Photographer
Stocks are historically cheap - DailyWealth writer Dan Ferris crunched numbers on 120 years of stock market data and discovered the current bear market is among the deepest in history, resulting in historically cheap stock prices for some of the world's best companies.