When brokers encourage investors to place bids for IPO shares on the first day that are above the offer price this is referred to as

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Encouraging investors to place bids for IPO shares on the first day that are above the offer price is known as laddering. This practice is illegal as it artificially inflates the demand and price of the IPO shares, thereby defrauding investors. Flipping refers to the practice of buying IPO shares and quickly selling them for a profit, while spinning refers to the practice of awarding IPO shares to influential clients in exchange for future business.

When Brokers Encourage Investors to Place Bids for IPO Shares