Payment for your allotted IPO shares?

Posts: 30 · Vonage Forum Junior Joined: May 21, 2006 Posts: 30

As most of you know, Vonage issued a statement that it would pay the underwriters for the unpaid shares allotted to investors who do not pay for the shares.

This opens up a can of worms, as most (if not all) investors would rather not be left holding the bag of a stock which has dropped more than 25% from the IPO price.

Vonage has basically allowed for a way out of this lousy investment. Don't pay for your shares.

This has prompted a lot of people to call their banks and put stop-payments on their checks, since Vonage will pay the underwriters for the shares if the investors don't pay. Whether this is legal or not given the fact that Vonage has said that they will pay for unpaid shares, or whether the underwriters will come after investors for the money, is unknown.

Anyway, I thought it would be interesting to see a poll of what people are going to do about this.

*** DISCLAIMER: This is in no way a recommendation of any specific action as to what investors should do with regard to payment for their allotted IPO shares.

Posts: 476 · Posted: Wed May 31, 2006 5:56 pm Post subject:

Edit: moved to its own thread by request.

Posts: 17 · Vonage Forum Associate Joined: May 23, 2006 Posts: 17

blakadher wrote:

Experts have said it isn't clear that Vonage would have the legal standing to pursue customers who defaulted on agreements with banks to buy shares.

Posts: 16 · Vonage Forum Associate Joined: May 31, 2006 Posts: 16

blakadher wrote:

Before you decide not to pay, you may want to consider this. Someone got this off the DJ wire and posted it to the message boards on finance.yahoo.com:

[/quote]

So now it is OK for you to do multiple reposts of the copyrighted article?

Posts: 476 · Posted: Wed May 31, 2006 8:01 pm Post subject:

OtisABlock wrote:

So now it is OK for you to do multiple reposts of the copyrighted article?

I originally posted it here and was then asked to move it to its own thread. But you're right...I modified my quote to fall within Fair Use purposes. Now you can lambaste the OP on the Yahoo! boards...

Posts: 16 · Vonage Forum Associate Joined: May 31, 2006 Posts: 16

blakadher wrote:

OtisABlock wrote:

So now it is OK for you to do multiple reposts of the copyrighted article?

I originally posted it here and was then asked to move it to its own thread. But you're right...I modified my quote to fall within Fair Use purposes. Now you can lambaste the OP on the Yahoo! boards...

Nah ... I've worked that out of my system for the day. (c;

Posts: 80 · Vonage Forum Senior Joined: May 24, 2006 Posts: 80

bigtuna wrote:

Anyway, I thought it would be interesting to see a poll of what people are going to do about this.

Since I did not buy Voange shares in teh IPO, I did not vote in the poll.

Had I ordered shares though, I would have paid my shares and taken my loss, simply because it would be the only right thing to do.