Investors who know about the value of a new stock can make money by trading it after it goes public. Both methods of selling new stocks, bookbuilding and fixed price, need to set lower prices to attract these informed investors. Bookbuilding can be especially expensive because investors may bid less in the beginning due to the potential for profit later. Surprisingly, selling stocks at a fixed price to regular investors can actually make more money on average than using bookbuilding. This suggests that limiting access to the initial sale can be a good idea, which explains why American bankers often market new stocks to a select group of investors.