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