BROWSE

Laddering

Definition

Laddering is an investment technique that requires investors to purchase multiple financial products with different maturity dates.

What is 'Laddering'

The promotion of inflated pre-IPO prices for the sake of obtaining a greater allotment of the offering. Laddering is an illegal IPO practice in which the underwriter engages in the sale of IPO shares to clients with the implicit agreement that more shares will be purchased post IPO, leading to big gains for both parties. Once the price increases a certain level, "insiders" then sell their shares and take their profits.

Explaining 'Laddering'

An underwriter will push up the issue price of an IPO through promotion, in order to please the issuer and secure a larger allotment. By agreeing to allocate additional shares to choice clients, the underwriter and clients can make big gains on the IPO shares, while the firm offering shares in the IPO are happy with the underwriter for creating increased market value.





Further Reading


Laddering in initial public offerings
www.sciencedirect.com [PDF]
Laddering is a practice whereby the allocating underwriter requires the ladderer to buy additional shares of the issuer in the aftermarket as a condition for receiving shares at the offer price. This paper identifies factors that create incentives to engage in this type of …

Of belts and ladders: state policy and uneven regional development in post‐Mao ChinaOf belts and ladders: state policy and uneven regional development in post‐Mao China
onlinelibrary.wiley.com [PDF]
Laddering is a practice whereby the allocating underwriter requires the ladderer to buy additional shares of the issuer in the aftermarket as a condition for receiving shares at the offer price. This paper identifies factors that create incentives to engage in this type of …

Kicking away the ladder: Infant industry promotion in historical perspectiveKicking away the ladder: Infant industry promotion in historical perspective
www.tandfonline.com [PDF]
Laddering is a practice whereby the allocating underwriter requires the ladderer to buy additional shares of the issuer in the aftermarket as a condition for receiving shares at the offer price. This paper identifies factors that create incentives to engage in this type of …

Bond portfolio laddering: a mean-variance perspectiveBond portfolio laddering: a mean-variance perspective
papers.ssrn.com [PDF]
Laddering is a practice whereby the allocating underwriter requires the ladderer to buy additional shares of the issuer in the aftermarket as a condition for receiving shares at the offer price. This paper identifies factors that create incentives to engage in this type of …

Bond ladders and optimal portfoliosBond ladders and optimal portfolios
academic.oup.com [PDF]
Laddering is a practice whereby the allocating underwriter requires the ladderer to buy additional shares of the issuer in the aftermarket as a condition for receiving shares at the offer price. This paper identifies factors that create incentives to engage in this type of …

An Empirical Study on the Laddering Migration of China's Floating Population <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-RKXK201104003.htm' />An Empirical Study on the Laddering Migration of China's Floating Population [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-RKXK201104003.htm'>PDF]
Laddering is a practice whereby the allocating underwriter requires the ladderer to buy additional shares of the issuer in the aftermarket as a condition for receiving shares at the offer price. This paper identifies factors that create incentives to engage in this type of …

Safety nets and opportunity ladders: Addressing vulnerability and enhancing productivity in South AsiaSafety nets and opportunity ladders: Addressing vulnerability and enhancing productivity in South Asia
onlinelibrary.wiley.com [PDF]
Laddering is a practice whereby the allocating underwriter requires the ladderer to buy additional shares of the issuer in the aftermarket as a condition for receiving shares at the offer price. This paper identifies factors that create incentives to engage in this type of …

Applying the means-end chain theory and the laddering technique to the study of host attitudes to tourismApplying the means-end chain theory and the laddering technique to the study of host attitudes to tourism
www.tandfonline.com [PDF]
Laddering is a practice whereby the allocating underwriter requires the ladderer to buy additional shares of the issuer in the aftermarket as a condition for receiving shares at the offer price. This paper identifies factors that create incentives to engage in this type of …

Moving up the ladder or stuck on the bottom rung? Homeownership as a solution to poverty in urban South AfricaMoving up the ladder or stuck on the bottom rung? Homeownership as a solution to poverty in urban South Africa
onlinelibrary.wiley.com [PDF]
Laddering is a practice whereby the allocating underwriter requires the ladderer to buy additional shares of the issuer in the aftermarket as a condition for receiving shares at the offer price. This paper identifies factors that create incentives to engage in this type of …


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