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Which of the following is not a potential reason for why IPOs may be intentionally underpriced? a. Underpricing may serve as compensation to investors for
Which of the following is not a potential reason for why IPOs may be intentionally underpriced?
| a. | Underpricing may serve as compensation to investors for taking large risk. | |
| b. | Underwriters may intentionally underprice IPOs to satisfy securities laws that limit the amount that they can charge investors for the shares in an IPO. | |
| c. | Underwriters may intentionally underprice IPOs to reduce the risk of being sued by investors. | |
| d. | Underwriters may intentionally underprice IPOs to reduce their marketing costs. | |
| e. | Both b and d | |
| f. | None of the above |
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
7th Edition
0324171730, 978-0324171730
