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:

Negative Ethical Consequences

Adverse outcomes that arise from actions or decisions that are considered morally wrong, harming individuals or society as a whole.

Morals

People’s adherence to right or wrong behavior and right or wrong thinking.

Right or Wrong Behavior

Actions or conduct judged according to moral principles, ethical standards, or legal guidelines.

Right-to-Work Laws

Laws that prohibit union security agreements between companies and workers' unions, effectively ensuring that union membership is not a requirement for employment in any position.