Define underpricing, and explain why the majority of IPOs are underpriced. What role do investment banks play

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Define underpricing, and explain why the majority of IPOs are underpriced. What role do investment banks play in the price-setting process?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 01:14 AM

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Define underpricing, and explain why the majority of IPOs are underpriced. What role do investment banks play

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Underpricing is the difference between the offering price and the closing pric...View the full answer

Fundamentals of corporate finance

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