10. In order to complete an initial public offering your firm must select a lead underwriter. Briefly describe the role of the lead underwriter in an IPO. Why do they form an underwriting syndicate? How do they go about "building a book," and deciding on an issue/offering price? Who gets to buy shares at the issue price during an IPO? 11. What are the risks that underwriters face in an IPO, and how do underwriters make money? 12. What is the phenomenon of IPO "underpricing?" What evidence do we have that IPOs are underpriced, on average? What are 1-2 reasons why IPOs might be underpriced on average? Would we see IPO underpricing in a perfectly efficient market