Thursday, June 14, 2001

Bob Walker is an idiot Here's a column from Slate's Bob Walker, demonstrating why he has no understanding of business or economics (a problem because the plays at being a business journalist). Just to recap -- the purpose of an IPO is to raise as much money for the company as possible. Therefore, it should sell its equity for the highest price the market will bear. Ergo, any increase in price immediately following an IPO is a sign that the IPO price was too low, and that the company has left money on the table. During the Internet era, there was widespread ignorance of business and economics, but with Kraft, it seems as if that's limited to Bob.

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