They Soared, Then Fell Hard

Bancroft Capital LLC, a Fort Washington investment adviser and broker-dealer whose certified veteran-owned status gives it preferential treatment in corporate bond sales, in 2024-25 raised $100 million for 11 small companies through initial public stock offerings (IPOs) on the Nasdaq Capital Market. Most rose sharply after they first traded, then collapsed, wiping out paper profits of over $2 billion. The stocks now trade at 45% to 100% below their IPO prices.  Citing “pump and dump” frauds against small stocks by third-party promoters on social media, Nasdaq and the SEC have since made it harder for companies to make these small stock offerings.