Question
Over the last 50 years, I.P.O.'s in the United States have been underpriced by 16.8 percent on average. This translates to more than $125 billion
Over the last 50 years, I.P.O.'s in the United States have been underpriced by 16.8 percent on average. This translates to more than $125 billion that companies have left on the table in the last 20 years.
- Briefly describe I.P.O underpricing.
- How does underpricing translate into companies "leaving money on the table"?
- Describe 3 possible explanations for the underpricing phenomenon.
Step by Step Solution
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IPO Underpricing Initial Public Offering IPO underpricing refers to the situation where the offering price of a companys shares to the public is set l...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
