Matt Levine’s Money Stuff: Bill Ackman Wants Less Money

PSUS oops

Every initial public offering is marketed in two ways:

1. “This company is good”: This is the story that the IPO prospectus will tell, and that the company will tell in roadshow meetings with potential investors. The company has a good business, a good product, smart managers, strong financial results, so if you are a long-term fundamental investor you should buy some stock.
2. “This stock will trade up”: This is the story that the marginal investor in the IPO wants to hear. The company is selling X million shares in the IPO, there are orders for 10X million shares, there ...