Three months ago, Intergalactic Software Company went public. You are a sophisticated investor who devotes time to
Question:
Three months ago, Intergalactic Software Company went public. You are a sophisticated investor who devotes time to fundamental analysis as a way of identifying mispriced stocks. Which of the following characteristics would you focus on in deciding whether to follow this stock?
• The market capitalization
• The average number of shares traded per day
• The bid–ask spread for the stock
• Whether the underwriter that brought the firm public is a Top Five investment banking firm
• Whether its audit company is a Big Six firm
• Whether there are analysts from major brokerage firms following the company
• Whether the stock is held mostly by retail or institutional investors AppenidxLO1
Step by Step Answer:
Business Analysis And Valuation Using Financial Statements Text And Cases
ISBN: 9780324015652
2nd Edition
Authors: Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard, W.Gordon Filby