FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A reason for the undepricing of IPOs is Multiple Choice Overpriced stocks are avoided by informed invetsors which lowers demand, resulting in uninformed investors purchasing

image text in transcribed
A reason for the undepricing of IPOs is Multiple Choice Overpriced stocks are avoided by informed invetsors which lowers demand, resulting in uninformed investors purchasing the Issue. None of the above options The shares of new company do not have liquidity The offer price of a new company is very difficult to set

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Entrepreneurial Finance

Authors: J . chris leach, Ronald w. melicher

4th edition

538478152, 978-0538478151

More Books

Students also viewed these Finance questions

Question

★★★★★
What is the purpose of the command interpreter? Why is it usually separate from the kernel? Would it be possible for the user to develop a new command interpreter using the system-call interface...

Answered: 1 week ago

Question

★★★★★
The rate law for: N2(g)+3H2(g)2NH3(g) can be written as: A. rate =k[H2]y[NH3]y B. rate =k[N2]x[NH3]y C. rate =k[N2]x[H2]y

Answered: 1 week ago

Question

★★★★★
Do you think the employees of the dry cleaner need ethnicity training regarding how to work with people of different ethnicities?

Answered: 1 week ago

Question

★★★★★
Lessor Entries, Sales-Type Lease Watkins Company, a machinery dealer, leased a machine to Romero Corporation on January 1, 2011. The lease is for an 8-year period and requires equal annual payments...

Answered: 1 week ago

Question

★★★★★
A reason for the undepricing of IPOs is Multiple Choice Overpriced stocks are avoided by informed invetsors which lowers demand, resulting in uninformed investors purchasing the Issue. None of the...

Answered: 1 week ago

Question

★★★★★
We need leaders, even among followers, to fight Groupthink. So when we talk of "Diversity" let's make sure we mean diverse THINKING as well as other factors. (HINT: One way to fight groupthink in...

Answered: 1 week ago

Question

★★★★★
Car expenses using logbook and expense data Rory derives business income from a retail cosmetics store. On 1 October 2023, Rory bought a Mercedes for $38,340. Its effective life is eight years. Rory...

Answered: 1 week ago

Question

★★★★★
An analyst for Bloom Ltd, gathered the following information with regards to futures contract: Current spot-market price of R60 Risk-free interest rate of 8.87% per annum The six-month future...

Answered: 1 week ago

Question

★★★★★
Case 2: Maria Sosa is selling a 2015 Nissan Verson SV to Juan Rodriguez for RD$400,000.00 pesos. Juan Rodriguez tells her that he will pay Mrs. Sosa in cash. Analyze the case and then answer: Can Mr....

Answered: 1 week ago

Question

★★★★★
It is estimated that 28% of all adults in the United States invest in stocks and that 83% of U.S. adults have investments in fixed income instruments (savings accounts, bonds, etc.). It is also...

Answered: 1 week ago

Question

★★★★★
Stillwater Stationery has two business segments, the Paper Segment and the Writing Implement Segment. The contribution margin for the Paper Segment is $98,000 and the contribution margin for the...

Answered: 1 week ago

Question

★★★★★
=+7. In the Solow model, population growth leads to steady-state growth in total output, but not in output per worker. Do you think this would

Answered: 1 week ago

Question

★★★★★
=+still be true if the production function exhibited increasing or decreasing returns to scale? Explain. (For the defi nitions of increasing and decreasing returns to scale, see Chapter 3, Problems...

Answered: 1 week ago

Question

★★★★★
=+the twentieth century. Use the Solow model to forecast the effect of this slowdown in population growth on the growth of total output and the growth of output per person. Consider the effects both...

Answered: 1 week ago

Previous Question Next Question