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Which one of the following statements about IPOs is NOT true? - IPOs are usually overpriced relative to the levels at which their price stabilizes

Which one of the following statements about IPOs is NOT true?

- IPOs are usually overpriced relative to the levels at which their price stabilizes after they begin trading in the secondary market

- Firms will usually hire an underwriter to deal with the process of IPOs and communicate with institutional investors

- IPOS often provide very good initual returns to investors

- IPO is the process of seeling stock to the public for the first time

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