According to Economists, This Is the Main Reason for Underpricing

question 76

Multiple Choice

According to economists, this is the main reason for underpricing of new issues.

• A)Lack of competition among existing investment banks.
• B)Entry of banks into the investment banking sector.
• C)Monopoly power of the existing investment banks.
• D)Mismatch of demand and supply of securities.
• E)Risk premium for information advantage possessed by issuers.

Acquire knowledge on managing relationships and the ethical use of power in the workplace.

Understand the concept of collective intelligence and its significance in team performance.

Identify the role and impact of maintenance activities within a group.

Recognize behavior profiles that may hinder group operations and strategies to cope with them.

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Definitions:

Organization

A structured group of people working together to achieve common goals.

Personal Power

Refers to the influence or authority an individual possesses that stems from within, often based on competence, skill, or personality, rather than formal position.

Referent Power

A form of influence based on the ability to inspire admiration, respect, or affection from others, often stemming from one's charisma or likability.

Coercive Power

A form of power that is based on the ability to deliver punishments or impose negative consequences on other people.