Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Precalculus

Authors: Jay Abramson

1st Edition

1938168348, 978-1938168345

Students also viewed these Finance questions