Finance Articles: page 2

Online Car Seller Vroom Files Confidentially for IPO

“Online used-car seller Vroom Inc. has filed confidentially for an initial public offering it hopes to stage in June, according to people familiar with its plans, a move that will test the ice-cold tech IPO market,” write Rolfe Winkler and Corrie Driebusch.  Read more about how this IPO might fare with help from Cordell Eminent Scholar Chair Jay Ritter’s research in this story from The Wall Street Journal. 

Repeat After Me: The Markets Are Not the Economy

“[Markets and the economy] have been intertwined in the American psyche since the 1929 stock crash and the onset of the Great Depression. But stocks are not a reliable gauge of overall economic health,” writes Matt Phillips.  Cordell Eminent Scholar Chair Jay Ritter explains why in this story from The New York Times. 

A Big, Once-Reliable Source of Investor Cash Is Drying Up

“The swings of the stock market have been painful enough lately. But on top of the price declines that have kept many investors awake at night, another insult is on the way: Stocks will be providing much less income,” writes Jeff Sommer of The New York Times.  Cordell Eminent Scholar Chair Jay Ritter is just one scholar Sommer reached out to as part of this story on the cutting of dividends. 

Virgin Galactic stock is skyrocketing. It’s just hype.

“Every couple of years, a new stock mania captures the imagination of the investing public. From 3-D printers to the blockchain and pot stocks, many investors fall for stocks with seemingly limitless potential. What’s the latest frenzy infecting stocks? It may be Virgin Galactic Holdings, which could very well be the frothiest stock around right now,” writes Tae Kim of Barron’s.  See if Cordell Eminent Scholar Chair Jay Ritter agrees with the hype in this story from Barron’s. 

Airbnb swings to a loss as costs climb ahead of IPO

“Airbnb Inc. swung to a loss for the first nine months of last year as costs rose sharply, according to people close to the company, raising questions about the valuation and timing of the home-sharing giant’s much-anticipated public-markets debut,” writes The Wall Street Journal.  The loss isn’t too unusual, though, according to Cordell Eminent Scholar Chair Jay Ritter, as he’s found that fewer than one in four technology IPOs in the five years through 2019 were profitable.  See what else

New study highlights the real cost of political interference in banking

GAINESVILLE, Fla. – Banks across the world have long faced a common threat – political interference. Previous studies have shown that the world average of government ownership of banks is almost 42 percent, putting banks at risk of political capture. Following the 2008 financial crisis, when many governments stepped in to save their banks from crisis, deep political divides formed and caused political interference to become the number one industry concern among bankers, non-bankers and regulators, according to a study

Why this IPO expert says investors are ghosting Casper

CNBC’s “Power Lunch” team discusses the upcoming Casper IPO with Jay Ritter, Cordell Eminent Scholar Chair and IPO expert. See what Ritter had to say about why investors are ghosting Casper. 

Winter Haven-based CenterState Bank: Merger with South State ‘will keep us competitive’

“Winter Haven-based CenterState and South State, headquartered in Columbia, S.C., announced the all-stock merger valued at $3.2 billion in a Jan. 27 statement. If approved by regulators, the combined bank, which will take the South State Bank name, will be the eighth largest bank in the Southeast with a market value of about $6 billion and assets of $34 billion,” writes Kevin Bouffard of the Winter Haven News Chief.  Bouffard spoke with Richardson Faculty Fellow Jim Parrino, an expert on

The decline in secured debt

“What role does collateral play in corporate borrowing?” ask Assistant Professor of Finance Nitish Kumar and his colleagues Efraim Benmelech of Northwestern University and Raghuram Rajan of the University of Chicago. The researchers explain that collateral comforts and protects a lender against the threat of a default. “When an effective system of seniority of claims is not available, creditors who register the collateral backing their debt with a collateral registry effectively establish the seniority of their debt claim, at least

Finance and marketing PhD students honored with teaching awards

GAINESVILLE, Fla. – Ph.D. students Mustafa Emin and Sang Kyu Park were awarded Warrington College of Business Ph.D. Teaching Awards for their teaching efforts in the fall and spring 2019 semesters.  The award is presented by the Teaching & Learning Center at Warrington to recognize outstanding graduate student teaching and instructional innovation. The recipient for each semester is selected by the Warrington Teaching Committee. Emin is a Ph.D. candidate in Warrington’s Department of Finance, Insurance and Real Estate. His current