In the context of an entrepreneur seeking an initial public offering (IPO) of shares in her company, discuss the concepts of uncertainty, information asymmetry, and the supply of and demand for information. Select the best choice for each concept. Uncertainty: Demand for information: Potential investors demand information to reduce the uncertainty. Potential investors demand information to reduce the stock price. The entrepreneur demands a low stock price in order to increase the value of the company The entrepreneur demands a low stock price in order to sell more stock. In the context of an entrepreneur seeking an initial public offering (IPO) of shares in her company, discuss the concepts of uncertainty, information asymmetry, and the supply of and demand for information. Select the best choice for each concept. Uncertainty: Demand for information: Supply of information: Financial information of the company should not be supplied to potential investors. Supplying information that reduces the investor's perception of uncertainty will yield a higher stock price. Supplying information that reduces the investor's perception of uncertainty will yield a lower stock price. Supplying information to potential investors decrease the value of the company. In the context of an entrepreneur seeking an initial public offering (IPO) of shares in her company, discuss the concepts of uncertainty, information asymmetry, and the supply of and demand for information. Select the best choice for each concept. Uncertainty: Demand for information: Supply of information: Information asymmetry: Information asymmetry is when the entrepreneur provides prior years tax returns to the potential buyers. Information asymmetry is when the potential buyers provide financial information to the bank. There is information asymmetry because the entrepreneur has more knowledge of her company's operations than the buyers There is information asymmetry because the potential buyers have knowledge of the company's industry. In the context of an entrepreneur seeking an initial public offering (IPO) of shares in her company, discuss the concepts of uncertainty, information asymmetry, and the supply of and demand for information. Select the best choice for each concept. Uncertainty: There is uncertainty about the entrepreneur's personal information. There is uncertainty about the future success of this company and the value of the company's shares in the future. There is uncertainty about the incorporation date of the company. There is uncertainty about the par value of the company's shares. There is uncertainty about the potential buyers' personal information
