Woo said the volatility market is underpricing the election risk.
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You had health plans that were underpricing their products and receiving reinsurance.
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The service will be $2453 per month or $69.99 annually, underpricing Netflix.
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One estimate had underpricing of IPOs between 85033-2000 at $62 billion.
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AD: So do you think that the markets are underpricing the risk?
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The continuing focus on yield is possibly leading to underpricing of risks, it said.
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Auctions, however, have not taken off, in spite of lower fees and less underpricing.
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In essence, President Trump's plan would stop overpricing of drugs at home and underpricing abroad.
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"You had health plans that were underpricing their products and receiving reinsurance," Avalere's Pearson says.
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"He said that markets are underpricing the no-deal risk," one euro zone official said.
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Underpricing encourages the building of new houses and discourages existing owners from renovating or moving out.
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BNP's Lynton-Brown thinks the market is underpricing the chances of a rate hike next month.
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Today, however, long-term care insurers face accusations of badly underpricing their policies as costs skyrocket.
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However, the market may be underpricing the risk of a no-deal Brexit; options expiring after Oct.
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But there is evidence that underpricing was fairly widespread, so it will affect a substantial number of them.
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"That could be a massive source of revenue the market is completely underpricing at this point," he said.
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Still, the company's primary selling point will be underpricing its competition because of the company's proprietary technology, Brock said.
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But Draghi also said that private sector preparations were still incomplete and stressed that markets were underpricing the risks.
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But Citizens was not required to match its rates to its risks, and it ended up underpricing the remaining insurers.
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Like, how do you explain to them that you&aposre not going to be underpricing just to gain market share?
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Goldman economists argue that the market is underpricing Fed action, which they believe will amount to four rate hikes in 2018.
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And Microsoft is already familiar with coming late to market with a product, then copying, underpricing, and scaling its way to success.
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Based on Ritter's data, he estimates that Silicon Valley companies have handed over more than $170 billion as a result of underpricing.
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Adding up the fees, the underpricing and the discounted shares purchased by underwriters, companies are paying over 40% for the capital they raise.
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Their early conclusion: An all-but oblivious Wall Street is underpricing the risk of intense heat, wildfires, drought, storms and floods to their investments.
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Bankers drummed home the message that money saved in underwriting fees was dwarfed by the amount Google left on the table through the underpricing.
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And as for the impending second quarter earnings season, "we think the market is underpricing the risk that companies lower full-year guidance," he added.
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She notes for example that the software helps brands track sellers to highlight adjacent issues related to illegal sales, such as underpricing in specific geographies.
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At the very least it should press SOEs to boost returns as a way of showing that they are not underpricing products or being subsidised.
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But it does suggest investors have been underpricing certain risks, and for many people, this triggers anxious memories of the months before the 2008 crash.
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The lawsuit sought at least $170 million in damages, representing Primus' alleged losses from the underpricing of EON, plus at least $340 million in punitive damages.
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Faucher said the market might be "underpricing" the chance that continued solid growth will lead the Fed to raise rates in the middle of the year.
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Yet Mr. Miranda and his investors could find better ways to give back to the community than vastly underpricing most "Hamilton" tickets and enriching ticket resellers.
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European Central Bank Vice-President Luis de Guindos said at the same event that markets may be underpricing the potential impact of a no-deal Brexit.
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The state and its advisers, however, will face charges of underpricing the country's showpiece privatisation by leaving around 600 million euros of value on the table.
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At the May second-quarter Inflation Report meeting, Carney suggested that markets were underpricing the central bank's rate trajectory, insisting that the next move would be up.
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Options investors are underpricing upside potential on Covanta and EOG Resources compared with the median post-earnings move in the last four quarters, the Goldman team wrote.
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"We continue to believe the market is underpricing Restaurant Group's potential to improve returns over the medium-term," said JP Morgan analyst Alexander Mees in a note.
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In a prolonged battle against Hong Kong real estate partners whom Trump accused of underpricing West Side real estate, Trump replaced Kasowitz after he lost a key motion.
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However, given the slew of positive economic data, Schlossberg says the market may be underpricing the possibility that the Fed will look to hike further sometime in 2016.
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Nevertheless, he said, traders are underpricing inflation risk in the coming months by as much as 1 percentage point from current levels if oil and wage trends hold.
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Premack: Overall, people are talking about how the digital freight marketplace startups are underpricing some of the competitors on the, some would say, traditional side of freight brokerage.
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The Treasury Department imposed sanctions on Mr. Gertler in December, raising questions about the underpricing of mining assets that were sold to companies with ties to the billionaire.
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In America, points out Christian Wetherbee of Citi, a bank, the United States Postal Service has subsidised the rise of e-commerce by systematically underpricing the cost of parcel deliveries.
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Some of the early underpricing may have been strategic — as insurers were hoping to hook new customers with low prices and to try to keep their loyalty as prices rose.
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The Trump administration has argued that countries like China and Germany have built up their manufacturing industries in part by underpricing their currencies, which makes their goods artificially cheaper abroad.
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With options underpricing risk, they provide a more attractive way to trade these uncertain markets than sitting in cash, BofA Merrill Lynch Global Research analysts said in a note on Tuesday.
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Bart De Muynck, the vice president of research at Gartner, told Business Insider these new apps were underpricing traditional brokers to gain market share but were generating revenue at a loss.
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"We viewed the U.S. Tax legislation as the most significant upside catalyst for equities given the market was underpricing the probability of passage," explained Lakos-Bujas in Monday's note to clients.
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If premium increases allow insurers to earn a profit on Obamacare plans, it could very well be a one-time correction for previous underpricing that helps stabilize the market for the future.
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According to the US Treasury, between 2010 and 2012 the losses to the Congolese state from the underpricing of mines and mining licences handled by Mr Gertler came to more than $1.36bn.
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Markets are underpricing the risk that the coronavirus outbreak poses to the global economy, and central banks need to help business survive the impact of the virus, UBS chairman Axel Weber said.
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In his view, the behavioral tendency of wanting to get rich quickly leads to a systemic overpricing of popular, low-quality stocks and a systemic underpricing of the boring, higher-quality companies.
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Wall Street critics argue that this system usually leads to the underpricing of IPO shares as underwriters eye the first day pop, the profits to be gained from the first day of trading.
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"Our thesis on Netflix from the beginning is that they were underpricing their product in exchange for achieving super-normal growth in subscribers, an economic trade-off we thought was well worthwhile," he added.
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Jay Ritter of the University of Florida says that during the past decade the underpricing of IPOs in America left a whopping $39bn on that table, or about 14% of the total sum raised.
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Back then, critics accused them of underpricing IPOs — discounting the share price on the day of the offering — to curry favor with the institutional buyers, effectively failing to maximize funding for the sponsoring company.
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Back then, critics accused them of underpricing IPOs — discounting the share price on the day of the offering — to curry favor with the institutional buyers, effectively failing to maximize profits for the issuing company.
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Helt said he thought the market was underpricing the chances of further rate hikes over the next two years, but it would take time for those expectations to adjust and to be reflected in sterling.
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"Markets clearly misunderstood Barnier's comments last week and even in the light of today's moves, investors are still underpricing the risk of a hard Brexit," said Ulrich Leuchtmann, a currency strategist at Commerzbank in Frankfurt.
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"We are underweight the euro and expect it to weaken towards $1.05," said Ryan Myerberg, portfolio manager at Janus Capital International, adding that the market was also underpricing the chances of the Federal Reserve raising rates.
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As a member of President Obama's economics team when Dodd-Frank was born, I viewed this (and still do) as a smart bit of insulation against the kind of systemic underpricing of risk that characterizes credit bubbles.
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But the Connecticut proposals assumed that the cost-sharing subsidies would be in place and that the individual mandate would be enforced — indicating health insurers are still recovering from underpricing their plans and are expecting more costly medical bills.
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But some investors think sterling, which has risen 53 percent this month against the dollar, is still underpricing the risk of a delayed transition deal, less than a year before Britain is officially due to leave the European Union.
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"The Fed wants to telegraph that it is in the process of normalizing rates and the market is underpricing a rate hike for this year," said Mike Lorizio, head of Treasuries trading at John Hancock Asset Management in Boston.
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SYDNEY, March 16 (Reuters) - Investors are underpricing the risk of higher interest rates globally and need to seek adequate compensation for that risk, Guy Debelle, Deputy Governor of the Reserve Bank of Australia said in a speech in Sydney on Friday.
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VIENNA, Feb 22 (Reuters) - Markets are underpricing the risk that the coronavirus outbreak poses to the global economy, and central banks need to help business survive the impact of the virus, the chairman of Swiss lender UBS, Axel Weber, said.
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Flywheel is focused on a narrow portion of Uber's business — ride-sharing — to make its accusations of underpricing, but Uber says it's broader goal is to end personal car ownership, which is why it is subsidizing its rides to keep fares so low.
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But it seems that a lot of the underpricing was a mistake, as insurers made bad estimates of how many people were likely to enter the markets in the early years and how much it would cost to pay for their medical care.
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After Mr. Iger proudly revealed his $6.99-a-month price point for Disney+, telling me that it would be hard for anyone to compete, Apple announced a streaming service for $4.99 a month, underpricing Mr. Iger, who was on the Apple board.
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The duo pointed out that data shows that the largest premium increases since 2014 have occurred in areas of the country that had the lowest premiums in 2014, which is consistent with the argument that some big premium hikes recently reflect initial underpricing of plans.
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"There are absolutely some carriers that are going to have to come in with some pretty significant price hikes to make up for the underpricing that they did before," said Sabrina Corlette, a professor at Georgetown University's Center on Health Insurance Reforms, while noting that the final picture remains unclear.
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On Friday, the U.S. ITC voted 4-0 to reject Boeing's claims that it suffered injury by Bombardier underpricing the CSeries in the U.S. market and discarded a Commerce Department recommendation to slap a near 300-percent duty on sales of the 110-to-130-seat jets for five years.
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Research by the economists Marie Connolly of the University of Quebec and Alan Krueger of Princeton based on a sample of major concerts in 22008 estimated that artists and promoters left about 22006 percent of potential income (or around $22007 million) on the table by underpricing tickets relative to the market rate.
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The U.S. administration is considering imposing trade penalties on its largest trading partner, China, for intellectual property (IP) theft and forced technology transfers, for underpricing solar panels sold in the U.S. and for subsidizing the cost of steel and aluminum exports to the U.S. Legislation is pending in Congress that would bring more scrutiny of Chinese investments.
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"We're expecting them to change their assessment around the risks – at the moment they have them to the downside, but we have an out-of-consensus call that they're likely to say either that downside risks have diminished or become more balanced," said BNP Paribas currency strategist Sam Lynton-Brown He added that this scenario should see the euro trade a little more strongly, though less against the dollar than against other European currencies, as in the bank's view, the market was underpricing further Fed rate hikes this year.
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IPO underpricing is the increase in stock value from the initial offering price to the first-day closing price. Many believe that underpriced IPOs leave money on the table for corporations, but some believe that underpricing is inevitable. Investors state that underpricing signals high interest to the market which increases the demand. On the other hand, overpriced stocks will drop long-term as the price stabilizes so underpricing may keep the issuers safe from investor litigation.
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When pricing an IPO, underwriters use a variety of key performance indicators and non-GAAP measures. The process of determining an optimal price usually involves the underwriters ("syndicate") arranging share purchase commitments from leading institutional investors. Some researchers (Friesen & Swift, 2009) believe that the underpricing of IPOs is less a deliberate act on the part of issuers and/or underwriters, and more the result of an over-reaction on the part of investors (Friesen & Swift, 2009). One potential method for determining underpricing is through the use of IPO underpricing algorithms.
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Many BART stations offer parking, however, underpricing causes station parking lots to overflow in the morning. Pervasive congestion and underpricing forces some to drive to distant stations in search of parking. BART hosts car sharing locations at many stations, a program pioneered by City CarShare. Riders can transfer from BART and complete their journeys by car.
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The effect of underpricing an IPO is to generate additional interest in the stock when it first becomes publicly traded. Flipping, or quickly selling shares for a profit, can lead to significant gains for investors who were allocated shares of the IPO at the offering price. However, underpricing an IPO results in lost potential capital for the issuer. One extreme example is theglobe.
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Besides, underpricing is also affected by the firm idiosyncratic factors such as its business model. Thus it is difficult to determine a clear price which is compounded by the different goals issuers and investors have. The problem with developing algorithms to determine underpricing is dealing with noisy, complex, and unordered data sets. Additionally, people, environment, and various environmental conditions introduce irregularities in the data.
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Formal and informal water tariffs in 6 Sub-Saharan Cities. World Bank WSS survey database There is an overall underpricing of formal water and sanitation services in Sub-Saharan Africa.Africa Infrastructure Country Diagnostic (AICD) (2009). Provision of water to the poor in Africa.
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In the past, most people in the market believed that convertible bond arbitrage was mainly due to convertible underpricing. However, recent studies find empirical evidence that convertible bonds usually generate relatively large positive gammas that can make delta-neutral portfolios highly profitable. Other research suggests that arbitrageurs in general take advantage of illiquidity and higher volatility.
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Steinberg took on large amounts of debt during the junk bond era and grew, apparently by underpricing its insurance policies. The company paid out dividends to the shareholders, including the Steinberg family members as major shareholders, and paid Saul Steinberg large sums in compensation. At Reliance, Steinberg hired dealmaker Henry Silverman, who would later become the CEO of HFS Inc. and later Cendant Corp.
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Second, underpricing is socially unfair. Since the poorest social groups are less connected to water networks and sewerage, they need to turn to alternatives, and they pay in some cases a multiple of the formal tariff. Hence, the poorest are hit twice: they have less access to improved water supply and sanitation, and they need to pay more. South Africa stands out for having introduced free basic utility services for all, including 6m3 of water per month for free.
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Overpricing can be said to be a necessary, but insufficient indicator that a bubble exists. Overpricing is defined more widely than a bubble. An asset may be overpriced without there being a bubble, but you cannot have a (positive) bubble without overpricing. Over- or underpricing may simply be defined as a deviation from the equilibrium price. DiPasquale and Wheaton (1994)DiPasquale, D. and Wheaton, W.C. (1994), “Housing market dynamics and the future of housing prices”, Journal of Urban Economics , Vol. 35, pp. 1-27.
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With the introduction of talking pictures, in 1927, studios immediately began filming acts from the stage. Such film shorts gradually replaced the live entertainment that had often accompanied cinema exhibition. By 1928, studios began planning to film feature-length versions of popular musicals and revues from the stage. The lavish films, noted by many for a sustained opulence unrivaled in Hollywood until the 1950s epics, reached a breadth of audience never found by the stage revue, all while significantly underpricing the now-faltering theatrical shows.
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Underwriters and investors and corporations going for an initial public offering (IPO), issuers, are interested in their market value. There is always tension that results since the underwriters want to keep the price low while the companies want a high IPO price. Underpricing may also be caused by investor over- reaction causing spikes on the initial days of trading. The IPO pricing process is similar to pricing new and unique products where there is sparse data on market demand, product acceptance, or competitive response.
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During the Reagan administration, Pendley was a deputy interior secretary for energy and minerals under James G. Watt. Pendley was reassigned in 1984 when a federal commission faulted him, along with other high-ranking officials, in the underpricing of coal-mining leases in the Powder River Basin, the largest such federal sale in history. Prior to joining the Department of the Interior, Pendley worked as a Legislative Assistant to former Wyoming Senator Clifford Hansen, and as Minority Counsel to the United States House Committee on Mines and Mining of the United States House Committee on Insular Affairs. Pendley is formerly a longtime president of the Mountain States Legal Foundation, a conservative Colorado-based group that advocates for selling off federal land in the West.
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Interview with the Smoking Stump: Rolling Stone, issue 361, vol. 2, page 13. They began playing larger and larger gigs, extremely underpricing tickets so that they would have an audience. Nonetheless, they continued to get more and more popular, mostly due to the band’s onstage antics. Chuckup’s style of singing, which included only singing in the range higher than when his voice would crack, drew girls from all around, and Phlubber’s increasing experimentation kept audiences on their feet.Interview with the Smoking Stump: Rolling Stone, issue 361, vol. 2, page 15. This included tuning all his strings to F# and playing his guitar not with a pick, but rubbing the whole guitar against a double bass. Coupled with Dick’s power chord rhythms, this created a dynamic sound that brought newfound popularity.
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By the 1880s, Standard Oil was using its large market share of refining capacity to begin integrating backward into oil exploration and crude oil distribution and forward into retail distribution of its refined products to stores and, eventually, service stations throughout the United States. Standard Oil allegedly used its size and clout to undercut competitors in a number of ways that were considered "anti-competitive," including underpricing and threats to suppliers and distributors who did business with Standard's competitors. The government sought to prosecute Standard Oil under the Sherman Antitrust Act. The main issue before the Court was whether it was within the power of Congress to prevent one company from acquiring numerous others through means that might have been considered legal in common law, but still posed a significant constraint on competition by mere virtue of their size and market power, as implied by the Antitrust Act.
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