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Suppose you are the lead underwriter for a start - up company. The company plans to sell 1 0 million shares at the price of
Suppose you are the lead underwriter for a startup company. The company plans to sell million shares at the price of $ per share. It also provides you an overallotment option of million additional shares. Recent road show estimates demand to be around million shares at $ There is lots of uncertainty about how the stock will perform after trading starts. Consider the following decisions. Before the trading starts tomorrow, you need to allocate sell a number of shares to the institutional investors now at the IPO price. How many shares will you allocate? a million shares b million shares c million shares d million shares e million shares
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