Netscape

This case basically speaks about two issues. One of them is about under pricing and over pricing of stocks at the IPO. Another thing is about what to do if the stocks were under priced and the company got more money than they needed.

It looks that in this case the IPO was under priced comparing to the prices at which they could be sold. This is determined by the price jumps of the shares on the date when they were first traded in the public security market.…