Open Price

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Open Price

The first price of a security at the beginning of a trading day.
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References in periodicals archive ?
The increase between the offer price and the open price for newly issued IPOs still remains a matter of concern, although these increases are not nearly at the levels exhibited by IPOs in 1999, when, for example, Enel, VA Linux, and Sycamore Networks experienced increases between their offer prices and their open prices of 966.9 percent, 896.7 percent, and 612.8 percent, respectively.
The online auction process was developed in response to the substantial increases between IPOs' offer prices and their open prices at the peak of the dot-com era.
Consequently, from the perspective of the issuing company, the increase between the offer price and the open price represents "money left on the table." The development of the Dutch auction process, used in Google's IPO, represents one of the most recent of the attempts to efficiently price IPOs by setting a sufficiently accurate offer price that the offer-to-open price increase and any substantial, immediate price appreciation in the absence of news are minimized.
This increase between the offer price and the open price is much greater than the increase for typical IPOs in 2004, as is evident in Table 2.
As of June 29, 2005, Google had exhibited price appreciation of 186.8 percent, relative to its open price. As is evident in Table 3, Google had more substantial price appreciation than 97 percent of the IPOs issued in 2004 across all industries and SIC codes, than 90 percent of the IPOs issued in its three-digit SIC industry area of the 7370s, and than 80 percent of the IPOs issued in its four-digit SIC code (7375).
One of the principal advantages of the online auction process is supposed to be that the increase between the offer price and the open price of an IPO is minimized, which provides the issuer with greater value.