15.2 If an investor can distinguish between overpriced and underpriced issues, she will bid only on the

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15.2 If an investor can distinguish between overpriced and underpriced issues, she will bid only on the underpriced ones. In this case she will purchase only issues that provide a 10% gain. How- ever, the ability to distinguish these issues requires considerable insight and research. The return to the informed IPO participant may be viewed as a return on the resources expended to become informed.

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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