SEC Follow Up Exhibits Part C SEC_OEA_FCIC_001760-2501

Table 2
Comparison of First Day Trading and Short Selling by Quartiles of First Day Returns
The sample includes 388 IPOs issued between January 1, 2005 and December 31, 2006 excluding closedend
funds. Short sales are from Regulation SHO Pilot data and compiled from the following exchanges
and SROs: Amex, Arcaex, Boston, Chicago, NASD, Nasdaq, National, NYSE and Phlx and are scaled by
shares offered, trading volume on the offer day and shares outstanding after the offer. Offer amount and
shares offered are from SDC and excludes the exercise of the overallotment option. Opening and closing
prices for the calculation of first day returns are from CRSP. Change in offer price is the percent
difference of the final offer price from the midpoint of the preliminary offer price range in the prospectus.
The percent positive (negative) change in offer price is the percent of IPOs whose final offer price
exceeds the midpoint of the offer price in the preliminary price range. Volume is the daily number of
shares traded from CRSP. Medians are in parentheses.
First Day Return
Lowest Quartile 2 Quartile 3 Highest
Number of IPOs 85 109 97 97
Offer Amount (in mils) $181.24 $173.53 $200.07 $200.25
First Day Return from Offer Price to Open
0.04%
(0.00%)
1.56%
(0.29%)
9.41%
(7.14%)
25.11%
(21.58%)
First Day Return from Open to Close
-4.70%
(-3.57%)
-0.31%
(0.00%)
0.72%
(1.43%)
6.20%
(5.60%)
First Day Return from Offer Price to Close
-4.78%
(-3.53%)
1.11%
(0.48%)
9.72%
(9.70%)
31.54%
(26.20%)
Change in Offer Price -12.55% -13.51% 0.08% 9.38%
Percent with Positive Change in Offer Price 9.41% 12.84% 58.76% 76.29%
Percent with Negative Change in Offer Price 76.47% 66.97% 30.93% 17.53%
Volume T+0/Shares Offered
48.49%
(46.39%)
46.56%
(37.88%)
60.41%
(59.57%)
80.53%
(74.63)
Short SalesT+0 /Shares Offered
5.48%
(4.07%)
5.20%
(3.44%)
7.37%
(5.67%)
11.00%
(7.80%)
Short SalesT+0 /Trading VolumeT+0
11.47%
(8.77%)
10.17%
(9.91%)
13.50%
(10.61%)
13.12%
(10.69%)
Short SalesT+0/ Shares Outstanding
2.39%
(1.35%)
2.07%
(1.21%)
3.15%
(2.26%)
4.49%
(2.93%)
Cumulative Short SalesT+0 to T+21/Shares Offered
12.83%
(10.57%)
13.27%
(9.97%)
18.94%
(14.13%)
33.38%
(20.55%)
38
SEC_OEA_FCIC_002489