IPO Share Sales Linked to Company Growth Opportunities and Stock Market Conditions.
The study looked at why original shareholders sell certain numbers of shares when a company goes public. It found that the decision to sell shares depends on the company's growth prospects. Shareholders also sell more shares when the stock market is doing well. Whether a company is family-owned or not, and whether shareholders are blockholders, also affects share transfer behavior. Controlling shareholders use IPOs to increase their ownership in the company.