Which of the following statement concerning IPO underpricing is correct?

		IPO underpricing refers to the difference between the underwriters' cost of buying shares in a firm commitment and the offering price of those shares to the public.
		IPO underpricing is a form of direct cost the issuer pays to raise new securities.
		IPO underpricing refers to the phenomenon that the closing price on the first day of trading is often lower than the initial offer price.
		Underpricing rewards institutional investors for the information they provide to underwriters regarding the potential interest in and value of a security issue.
		"Underpricing causes the issue of ""winner's curse""."