Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. explain why there is a tendency for ipos to be und

Explain why there is a tendency for IPOs to be underpriced.

90.2K

Verified Solution

Question

Finance

Explain why there is a tendency for IPOs to be underpriced.

Answer & Explanation Solved by verified expert
4.4 Ratings (672 Votes)
IPOs are generally underpriced due to a variety of reasons One reason is information asymmetry The market consists of informed investors who have information about the stock the IPO and uninformed investors who do    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Explain why there is a tendency for IPOs to be underpriced.

Other questions asked by students

Q

The patient is a 24 year-old truck driver who recently drove across the country, was admitted...

Chemistry
Q

compare and contrast spongy and compact bone. how does their structure correlate with their function.

Medical Sciences
Q

discuss the terrestrial /gas giant distinctions based on their rotation speeds,oblateness and magnetic fields?

Physics
Q

What would be the diagnosis and treatment? Peter is a 40 year old male who came...

Psychology
Q

A recent article in the Huffington Post talks about New York Governor Cuomo’s recent executive order...

Psychology
Q

A 10 0 Q resistor is hooked up in series with an 8 0 Q...

Physics
Q

Establish the equations Solve for the necessary variable Plug N Chug Express answers to 3...

Physics
Q

The total stopping distance T of a vehicle is shown below, where T is in...

Basic Math
Q

Kirpalani Stores manufactures customized household furnishings. The company uses a perpetual inventory system and...

Accounting
Q

Assuming that a periodic inventory system is used, what is the amount allocated to ending...

Accounting
Q

A medical office using the double-declining-balance method of depreciation purchased office furniture costing $36,000 and...

Accounting
Q

The Planning Budget for the Johnny Pickles Brewing Company is presented Below. The units of...

Accounting