Managing the Wall Street Experience

  1. Investment bankers are not known for their loyalty; they are interested in big fees, regardless where they come from.
  2. Underwriters are interested in their clients, particularly institutions doing well via your stock; therefore, they would like to price your stock low to reduce not only their (underwriter’s) risk but improve the possibility that their clients will do well with your stock and, therefore, buy the next deal coming down the pipe.
  3. Wall Street thinks of you and your company as merchandise; they don’t care about your clients or employees. As such, they are what I refer to as an “unnatural” constituency.
  4. Tell everyone on Wall Street the same thing at the same time via quarterly financial analysts meetings.
  5. Treat Wall Street people honestly. Their careers are at stake, and a lot of their customers money is on the line.
  6. Don’t expect Wall Street to be sympathetic to your problems. After all, chances are that you have made a lot of money via Wall Street, and it comes with a price.
  7. Don’t manage to the quarter; make this clear to Wall Street in the beginning. Expect your stock to take a hit as a result, but over time it will reach its appropriate value relative to its competitors.
  8. Remember, Wall Street is really like one big gambling casino. Don’t play games with your stock. Keep your eye on your customers and the bottom line, and let the stock take care of itself.

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