Which of the following are correct regarding corporate equity financing?

I. Transfer of control and diversification for existing shareholders are reasons for a publicly listed firm to go private.

II$.$ IPO underpricing indicates that buying and selling newly listed stocks during the first day of trading can be a profitable strategy.

III. SEO rights offers could potentially mitigate SEO announcement stock price drops by alleviating the adverse selection problem.

IV$.$ Underwriter spreads are the only costs associated with issuing publicly traded equity capital.

V$.$ Due to potential overvaluation or undervaluation in public stock markets, publicly listed firms face more severe information asymmetry problems compared to early stage privately held firms seeking venture capital financing.

Answer choices:

I and II only

I, II$,$ and III only

III only

IV and V only