Signalling 'hi jaanu'

Cheap talk and signals such as burning money affect fate in both IPO and online dating markets

In its recent IPO, photo-share app Snapchat sold its shares at just $17 apiece. Put another way, the firm burnt money (gave it away) by selling shares for too little. In doing so, it wooed investors and showed them its bright prospects. Seeing so much cash on the table, investors pounced on 200 million shares that Snapchat was selling. 

If the company had not burnt money, and only boasted that it was on its way to become the next Google, I doubt the IPO would have been a success. In the absence of a signal such as burning money to back