Historically, IPO Underpricing

question 13

Multiple Choice

Historically, IPO underpricing:

• A) Ranges between 2 and 30 %.
• B) Is relatively constant over time.
• C) Increased significantly from 2000 to 2003.
• D) Is a new phenomenon which began in the 1970's.
• E) Has exceeded 100 % on occasion.

---

Definitions:

Quit Jobs

The act of voluntarily leaving one's employment, often due to personal, professional, or financial reasons.

New Ideas

Original thoughts, concepts, or innovations that have not been previously introduced or implemented.

Objective

A specific, measurable goal that is designed to achieve a certain outcome within a set timeframe.

Corridor Principle

A theory suggesting that once entrepreneurs embark on a venture, they are likely to encounter unforeseen opportunities and paths that were not visible to them before starting the venture.