fintech-algorithms

IPO Fast-Entry Rule

Install and import

bash
npm install fintech-algorithms
ts
import { calculate } from "fintech-algorithms/index-and-benchmark-engineering/governance-and-maintenance/ipo-fast-entry-rule";

Signature

calculate(data)

Worked example

verified This is the worked example published in the article, replayed by the test suite on every run. The output cannot drift.

Input

data
{
  "candidates": [
    {
      "id": "IPO-A",
      "floatMarketCap": 1800,
      "liquidityDays": 10,
      "tradingDays": 10
    },
    {
      "id": "IPO-B",
      "floatMarketCap": 900,
      "liquidityDays": 9,
      "tradingDays": 10
    },
    {
      "id": "IPO-C",
      "floatMarketCap": 2200,
      "liquidityDays": 4,
      "tradingDays": 5
    }
  ],
  "minimumFloatMarketCap": 1500,
  "minimumLiquidityDays": 5,
  "minimumTradingDays": 5
}

Call

calculate(data)

Returns

object with 2 fields: results, fastEntryIds

{
  "results": [
    {
      "id": "IPO-A",
      "sizePass": true,
      "liquidityPass": true,
      "seasoningPass": true,
      "fastEntry": true
    },
    {
      "id": "IPO-B",
      "sizePass": false,
      "liquidityPass": true,
      "seasoningPass": true,
      "fastEntry": false
    },
    {
      "id": "IPO-C",
      "sizePass": true,
      "liquidityPass": false,
      "seasoningPass": true,
      "fastEntry": false
    }
  ],
  "fastEntryIds": ["IPO-A"]
}

Diagrams

IPO Fast-Entry Rule — article hero
IPO Fast-Entry Rule — failure guard
IPO Fast-Entry Rule — worked example

Calculation flow

IPO Fast-Entry Rule calculation flow 
flowchart LR
    A["Point-in-time inputs"] --> B["Validate units and timing"]
    B --> C{"Contract feasible?"}
    C -->|No| D["Reject with reason"]
    C -->|Yes| E["Calculate IPO Fast-Entry Rule"]
    E --> F["Recompute invariants"]
    F --> G{"Checks pass?"}
    G -->|No| D
    G -->|Yes| H["Publish audited output"]
IPO Fast-Entry Rule methodology state 
stateDiagram-v2
    [*] --> FrozenInputs
    FrozenInputs --> Validated: contract passes
    FrozenInputs --> Rejected: missing or infeasible
    Validated --> Calculated: apply named rule
    Calculated --> Audited: invariants pass
    Calculated --> Rejected: invariant fails
    Audited --> Published: version and timestamp recorded
    Published --> Revised: approved correction
    Revised --> FrozenInputs: rebuild from retained source state

How it works

This page states the contract — how to call it correctly. The article explains the concept: why it works, and where it breaks.

Read the article →

References