What is it in finance?

Assimilation in the financial world is a process in which a new security problem is sold throughout the extent, so subscribers will remain without any shares. The public completely absorbs this problem and starts trading in the secondary market, buying and selling as any other security. Assimilation is very desirable because it suggests that there is a healthy demand for newly issued security. Instead, it works with the subscription syndicate. Subscribers accept responsibility for distributing a security problem, taking the risk that they may not be able to sell a problem in totalitarianism, in exchange for a chance to profit from the difference between the price they pay for it, and the price they can order in the open market.

Iity, usually for brokerage houses, institutional investors and other major investors, the assimilation process can begin. If the offer is assimilated, the subscribers remained without unsold shares and the security was completely absorbed by the market. If there is no assimilation, the subscribers are nucENI to keep shares and try to sell them in the future.

Companies that have set a good price for the initial public offer and are considered as a rise and come, generally attract great interest from the investment public. These companies can usually count on the rapid public absorption of their shares, which can in turn increase their value, as members of the public compete for the purchase of shares after assimilation. On the other hand, a company that sets too high a price or is considered to be a dubious investment of valuations, investors are not interested and subscribers may not be able to sell the whole problem.

When new securities problems are issued, the financial press usually monitors them narrowly and for main companies can also monitor business activities. Companies are trying to carefully timed new offers to hit the market at a time when investors are active and enthusiastic about new problems. NHowever, the events intervene. Since these events are planned in advance, it is not possible to control situations such as war actions or other main news that will avert investors and reduce consumer confidence, leading to less interest in new securities.