Bob tells his broker to buy 100 shares of stock in every IPO that comes along, regardless of the issuer, because he has heard about the tremendous price increases in the first week of trading. Bob will likely: Multiple Choice Lose money, on average, because the most underpriced issues will likely be oversubscribed. Make money, on average, because underwriters typically underprice new issues. Losses on bad purchases. Make money, on average, because issues tend to be oversubscribed, allowing him to cover his Lose money, on average, because he will tend to get few shares from overpriced issues. If RVS offered 100,000 shares of stock in its IPO but only received payment for 79,500 shares, the firm most likely had a offering. Multiple Choice Best efforts. Standby. Flotation. Confirmed. Dutch auction