Question
A company offered shares in their IPO at $5.40 each. Their first sale on the ASX was at $5.00. By the end of the first
A company offered shares in their IPO at $5.40 each. Their first sale on the ASX was at $5.00. By the end of the first day of trading their shares were trading at $5.80 and today they are trading at $4.80. The cost of under-pricing the issue was
Select one:
a. The number of shares issued multiplied by -40c (i.e. overpricing occurred)
b. The number of shares issued multiplied by 40c
c. The number of shares issued multiplied by -60c (i.e. overpricing occurred)
d. The number of shares issued multiplied by 20c.
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Personal Finance
Authors: E. Thomas Garman, Raymond Forgue
9th Edition
0618938737, 978-0618938735
