Initial public offering laddering claims

{
  "id": "MLC-T-INS-001835",
  "term": "Initial public offering laddering claims",
  "field": "Insurance and risk management",
  "definition": "Allegations that underwriters of an initial public offering (IPO) illegally conditioned allocations of shares on agreements by investors to purchase additional shares in the aftermarket or to pay excessive commissions. These claims assert that such practices manipulate the market price of the newly issued stock. Such actions are considered a violation of securities laws and can lead to class-action lawsuits.",
  "subject": "Management Liability",
  "url": "https://mlchart.com/terminology/insurance/initial-public-offering-laddering-claims/"
}