Choose one fashion/luxury IPO from the past 20 years.Answer all 3 questions below. Add links to at least 3 sources on this.

1. What theory do you believe to be the most credible relative to IPO underpricing (Informational asymmetry, agency conflict, generating demand, etc)? Use a recent underpriced IPO example to further navigate this theory from the point of view of the investor (informed and uninformed), investment bank, and underwriter.

2. Using your underpriced IPO example, how would you have evaluated the IPO as a prospective investor?

This is something that may be difficult to answer based on learnings, but I it may be valuable in understanding that relevant financial data is important rather than relying on marketing or current demand. It's also interesting to think about the macro-environment since companies release IPOs when they feel demand will be high.

3. Explain the difference between value and valuation. If your underpriced IPO incurs a price dip in the coming days or months, what does this say about original valuation? What does this mean for uninformed investors?