Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0

I don't see why Visa's IPO is going to have such a huge impact on Mastercard's shares. Are there really people out there who think "I'm going to pay a $10 commission to sell MA so I can pay another $10 to buy V because I think Mastercard is going to get edged out of the credit card business by this strong new competitor"? Are there people who think that the IPO changes anything? Maybe Visa's IPO will cause people to rebalance the credit card payment systems segment of their portfolios.

If a rational investor owns MA, he's not going to sell it because of Visa's IPO. He might buy V with other money, and he might sell for another reason, but no decent investor, individual or institutional, will sell MA because of Visa's IPO. So what's the big deal? 

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.