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Indexing the IPO Sector with IPOX Indices

Josef A. Schuster

Abstract

Over the past years, pricing and regulatory issues surrounding Initial Public Offerings (IPOs) have been the subject of intense professional and academic debate. In response to the fundamental developments affecting the average IPO, the family of IPOX Initial Public Offering Indices was created as “Indices for value of issues of New Shares” which tracks the investment performance of IPOs issued in the United States during a predetermined time in aftermarket trading. The index technology facilitates the investment decision, trading process and analysis of risk in the IPO sector in respect to the unique institutional and market influences inherent in short- and long-run IPO aftermarket trading. Using the IPOX Indices technology also underlines the portfolio benefits of “IPO Indexation” and “Average IPO Investing”. It aims to become the leading benchmark against which to measure aftermarket IPO performance.

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