homework help


Personalized homework help for all major subjects.

Order confidently with our risk free, 14-day money-back guarantee.

  • ✔️ No sign-up required
  • | 🔒 100% Confidential

Our Expert Writers

We proudly boast a team of expert professionals with verified academic credentials, selected for their proven skills and flexibility through a strict process.

Engage with experts from the top universities across the globe.

Get Homework Help Instantly

Say goodbye to homework stress! 📚 Just share your details and we’ll whip up an affordable quote in no time – often within 15 minutes.

Get started now for FREE!

Submit Your Homework

Let our experts help you with your college homework

Trading Volume in the Tech Bubble

On average, IPOs appreciated by 65% on opening day, during the tech bubble of 1999 and 2000. IPO share allocation was equivalent to free money. Obviously, normal investors very rarely got such share allocations- only the favorite clients of the underwriters did. Later, this resulted in several lawsuits. One of these lawsuits revealed that VSFB (Credit Suisse First Boston) allocated IPO shares to over 100 customers, who, in return for their allocations, funneled around 33%-65% of their IPO profits back to CSFB through excessive trading of other stocks (such as Disney and Compaq) at inflated trading commissions.

What was the importance of this ‘kickback’ activity? In 1999 and 2000, underwriters left a total of around $66 billion on table for first day IPO buyers. If 20% was rebated to the underwriters by the investors, this would amount to $13 billion in profits. This would require trading of 130 billion shares at an average 10 cents commission per share, or trading of 250 million shares per day on average. These numbers indicate that kickback portfolio churning may have accounted for up to 10% of all the shares traded.


There are various ways in which capital is flown out of the financial market. Capital distributions like share repurchase and dividends are the most important venues. Several companies pay in dividends to their investors through some of their earnings. Obviously, dividends aren’t godsends. For example, a company with $100,000 worth would only be $99,000 worth if it pays $1000 as dividends.

If your share is worth $100, roughly you would only own $1 in dividends and $99 in stock. The total would still be $100, not less or more. (It might be less if you are required to pay certain taxes on receipts of dividend.) As an alternative, outstanding shares may be reduced by firms if they pay out their earnings in repurchases of share. For instance, $1000 for share repurchases may be dedicated by the firm, and thereof you could tell them to utilize $100 for repurchasing your share. You wouldn’t have lost anything even though you decide on holding onto the share.

Before, you owned 0.1% ($100/$100,000) of the company. Now, you shall own $1.0101% ($100/$99,000) of the company. You will find out that your share’s worth is still $100. Either ways, the outstanding public equity’s value in the company has reduced to $99,000 from $100,000. Share repurchases and dividends shall be further discussed in Chapter 19.

Companies may even quit public financial markets by delisting entirely. Delisting occurs usually when either a company is bought by company firm or when the company runs into so bad financial problems that they are unable to meet the minimum requirements of listing. Such sort of financial problems lead to liquidation or bankruptcy. Certain firms even liquidate in a voluntary manner. This whey they can sell their assets and pay the shareholders by returning their money.

This happens rarely since managers are interested in continuing their work; even the company’s continuation is not good for the shareholders. It is more common for firms to make poor investments and end up in a situation being delisted and becoming bankrupt. Thankfully, investors have limited liability. This means the worst that could happen is that they lose their investments, but they don’t have to pay any further for poor management.

Solve Them!

Question 7.16 What may happen if worth of open-end fund’s holding is a lot more than what fund’s shares are trading for? What may happen in the case of a closed-end fund?

Question 7.17 Discuss the primary mechanisms through money flows into the firms from investors.

Question 7.18 What institutional mechanisms cause funds to disappear from public financial markets and return to the investors?

Question 7.19 How does share disappear from stock exchange?

Links of Previous Main Topic:-

Links of Next Financial Accounting Topics:-

Your Price: $11.00 $10.00

Pricing may change based on requirements

Descriptive text for the image

Get Homework Help In

Maths and Statistics


Humanities & Arts


Essay Writing

How Our Homework Service Works

FAQ number 1

Share your requirements

FAQ number 2

Make secure payment

FAQ number 3

Get homework answers

FAQ - Frequently Asked Questions

Discover quick answers in our FAQ, covering the most common customer questions about our homework help service.

Is your homework service confidential?


Absolutely! Confidentiality is one of the basic guarantees of our service at MyHomeworkHelp.com.

When our customers make their homework orders, they know their information remains 100% confidential.

Even your homework writer will not be provided with your personal details. So, when you hire a professional homework helper on our website, rest assured that your information will remain private and safe.

For a comprehensive understanding of how we protect your privacy, please refer to our Privacy Policy.

Who will help me with my homework?


We work with subject experts from all over the world. We hire them with the help of complex tests in the disciplines of their expertise. We also verify the IDs and academic transcripts of our homework writers to be sure that our experts have a bachelor's or master’s or a PhD degree. This is how we can be sure of the proficiency of our panel of experts who will help you with your homework.

Is it legal to ask for help with homework?


Seeking homework help is perfectly fine and shows your proactive approach to overcoming challenges. But it's important to use our homework service to enhance your understanding, not to replace your own efforts.

Our homework service offers original solutions for personal use, including:

  • Generating ideas or arguments for your research.
  • Deepening your subject comprehension.
  • Direct citation, with proper referencing.

However, it's crucial to avoid plagiarism by not submitting our work as your own. Make sure to check your institution's academic integrity policies before using our services. Our goal is to support your educational journey in a responsible and beneficial way. Refer our honor code for more details.

Is myhomeworkhelp.com legit?


Yes, myhomeworkhelp.com is completely legitimate. We've been successfully connecting students with top experts worldwide since 2012, offering direct, secure communication for a seamless learning experience. With over thousands of students helped and a commitment to innovative, effective education tools, we're dedicated to making learning easier and more accessible for everyone.

You can read our reviews here on Trustpilot and Sitejabber (Independent, verified reviews from buying customers) like you!

Is there a possibility of plagiarism in my completed order?


Unlike our competitors who use cheap and ineffective in -house plagiarism software, MyHomeworkHelp.com uses credible software to check your homework solution originality. We guarantee that your paper will pass TurnItIn checks with a low percentage of similarity. In addition, we also check submitted papers for ai-content using Originality.ai.

You will receive a complemantary plagiarism free report with your completed order.

What makes you one of the best homework help website?


We are not number 1 (yet!). We're an independent, bootstrapped business standing up to Big EdTech for last 12 years. So it means a lot that folks like you are willing to consider our services for your educational needs.

Myhomework Help is recognized as one of the premier websites for homework answers for three key reasons.

  1. Firstly, we pride ourselves on the expertise and qualifications of our tutors/experts, who are selected through a rigorous vetting process to ensure they can provide best academic assistance across a wide range of subjects.
  2. Secondly, our response time to student inquiries is fast (as early as few minutes), reflecting our understanding of the importance of timely support in an academic setting.
  3. Lastly, we keep our pricing very student friendly. Our aim is to provide the best learning experience to students like yourself without burning a hole in your pockets.