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Comment on Why Did Zynga Tank After Facebook IPOed?parent

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The underwriter has no legal obligation or "duty" to guarantee or support the original issue price. Definitely, they have an economic and business incentive to ensure the price stays above the issue price. Failure to keep the IPO above this price could lead to a loss of credibility with their large institutional buyers and also with the issuer and their participation in future IPOs.

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