Which of the Following Is NOT One of the Four

question 28

Multiple Choice

Which of the following is NOT one of the four characteristics of IPOs that puzzle financial economists?

• A)On average,IPOs appear to be underpriced.
• B)The long-run performance of the average newly public company (three to five years from the date of issue)is superior to the overall market return.
• C)The number of IPO issues is highly cyclical.
• D)The costs of the IPO are very high,and it is unclear why firms willingly incur such high costs.

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Definitions:

Conditioning

A process of behavior modification by which a subject comes to respond in a desired manner to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus that elicits the desired response.

Species-Specific Defense

Innate or evolved behaviors that are characteristic of a particular species and are used to defend against predators or threats.

Reactions

Responses or behavior of an organism resulting from external or internal stimuli.

Major Neurotransmitter

A primary chemical messenger that transmits signals across neurons in the brain and body.