Quote:
Originally Posted by bugeater
It is buyer beware. No ifs or buts. This is how the game is played. Everyone should be slamming whoever bought into the IPO and afterwards, not the former owners.
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Correct. A detailed Prospectus is required by law with an IPO and monitored by ASIC. From the ASX web site:
"The Australian Corporations Act contains a general disclosure test for prospectuses which, in summary, requires that a prospectus must contain all the information that investors and their professional advisers would reasonably require to make an informed assessment".
It seems whoever bought into the IPO and afterwards simply didnt do due diligence.
Technically, IPO fraud cant occur without lots of people ending up in jail.