Question
Which statement is not correct in relation to IPO overallotment option. From an IPO company or an investment bank's point of view, an overallotment option:
Which statement isnotcorrect in relation to IPO overallotment option. From an IPO company or an investment bank's point of view, an overallotment option:
Select one:
a.Allows investors to potentially buy more shares in the IPO at subscription price.
b.Effectively acts as a mechanism to stabilise price of shares in an IPO at listing.
c.Results in greater listing-day returns due to directly restricting the supply of IPO shares.
d.Effectively grants a call option to allot additional shares in an IPO.
e.Allows the bank to earn additional income from an IPO.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started