Two common statistics in IPOs are underpricing and money left on the table. Underpricing is defined as
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Two common statistics in IPOs are underpricing and money left on the table. Underpricing is defined as percentage change between the offering price and the first-day closing price. Money left on the table is the difference between the first-day closing price and the offering price, multiplied by the number of shares offered. Calculate the underpricing and money left on the table for eBay. What does this suggest about the efficiency of the IPO process?
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Financial Markets And Institution
ISBN: 9781292459547
10th Global Edition
Authors: Frederic Mishkin, Stanley Eakins
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