share price, page-9

In regards to an underwriter pushing the price down. I would appreciate someone educating me on how they are allowed to do such a thing and for it to be considered legal and ethical.

My simple logic suggests that any underwriter that drives the price down is actually acting with a conflict of interest. It certainly isn't in the interest of the company contracting them to raise funds. And a company knowingly dealing with such an underwriter could be considered to be somewhat in breach of their duties to existing shareholders. How do they effectively work there way aroudn these issues?