Investors and corporate insiders are reportedly finding Twitter's IPO as favourable, with the shares priced at 26 dollars each.
One of the highly anticipated public debut after last year's technically marred Facebook's IPO, institutional investors, such as pension funds and insurance companies, are glued to find out how big a jump in the Twitter's value will come as it begins trading on Thursday.
According to CBS News, the question lies about how much average investors will lay out to make a massive payday possible for bigger players.
The report said that despite the hype surrounding the IPO, it is understandable that a company wants to make as much money as possible, however, the more the company makes, the less the bankers and institutions make.
One of the reasons why Facebook's IPO last year was criticized was the lack of a big first-day jump in its stock price as it sold so many shares and got a high enough price for them, the first wave of demand was kept in almost perfect balance by that first price.
The report added that the more the jump in valuation, the more is the effect of the bigger fool theory, and that is why many financial advisors suggest waiting at least 90 days before buying a new stock.
Twitter's offer of 70 million shares has valued the company at 14.2 billion dollars.
