Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Why do IPO's, on average, show a first day gain of anywhere from 10-20% or higher? Do companies accept a lower valuation when selling shares

Why do IPO's, on average, show a first day gain of anywhere from 10-20% or higher? Do companies accept a lower valuation when selling shares in an IPO? Why?

Please explain in great detail.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Finance Growth And Inequality

Authors: Louis-Philippe Rochon, Virginie Monvoisin

1st Edition

1788973682, 978-1788973687

More Books

Students also viewed these Finance questions

Question

Integration by Parts: Integrate /(1/x^3)* sin( 1/x)dx

Answered: 1 week ago