On: Dropbox jumps more than 40% in trading debut

[derefr]

> This risk aversion leads to people bidding under their expected value of the stock, and instead results in them choosing a price that they're much more (e.g. 90%) confident will be good.

In other words, guessing—before a stock even IPOs—the equilibrium point said stock will arrive at once it does enter the market, is a https://en.wikipedia.org/wiki/Keynesian_beauty_contest.