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IPOs are often underpriced, meaning that the firm's offering price is arguably its true value. Explain how the bookbuilding process can contribute to the

 

 

IPOs are often underpriced, meaning that the firm's offering price is arguably its true value. Explain how the bookbuilding process can contribute to the presence of IPO underpricing.

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The bookbuilding process is a common method used by companies and investment banks to determine the appropriate price range for an initial public offe... blur-text-image

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