After the SEC approves the registration statement for the IPO, the biggest responsibilty for the issuing company and the investment bank becomes ensuring that the determined number of securities is sold and the fim Iis able to raise the Intended amount The 1PO team-induding the investment bankers, smenior management team, lawyers, and Investor relations team--conducts various activities. Which of the following statements are true about the activities involved in the TPo processi? Check all that spply D The undenwiter selects institutional clients and takes the TPo team on a roadshow to make presentations to these clients across different cibles n Issuing firms mostly allow underpricing of their IPO because the company wants to create excitement and have a successful IPD, which would help the company in future offerings ? If the investment bankers in the book-building process realize that the demand for the securities is low, they can either niduce the offering price or consider withdrawing the IPO During the roadshow, the IPO team can make forecasts and express their opinions about the projected value of the company after the IPO to lure institutional investors. Suppose ReapingThelenefits Co. (RTB Co.) is one of the largest investment banking fims on wall Street vsionstone corp. hired RTBoo. as the underwriter for its IPO. RTB ca. has set the offering price of the share to $30 per share. The underwrters will charge a 4.6% spread. How many shares must the company sell tonet $77 millon, ignoring any other expenses? O 2.69 million shares O 3.77 million shares O 2.57 milion shares O 3.23 million shares Consider the cese of Linkedin Corp. In May 2011, Linkedtin issued ts tpo, which was priced at sas a share on the firnt day of trading, it hit $122.70. After six months of its IPO, the companyts sto wes treding tt doubie the price of its IPO highof There are several theories that explain TPO underpricing oneof them is that the underwriter needs an honest indication ofinberess when book-building information from the the offering, and underpricing is a pess ble way to secure this