The Allocation Percentage Assigned to the Number of Shares Desired

question 229

Multiple Choice

The allocation percentage assigned to the number of shares desired by an individual tends to:

• A) Be relatively constant over time.
• B) Be inversely related to the desirability of the IPO offering.
• C) Be directly related to the expected profits from acquiring the IPO shares.
• D) Lead to economic profits for those investors.
• E) Favor the smaller investor.

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Definitions:

Laceration

A deep cut or tear in skin or flesh, often requiring medical attention to clean, close, and prevent infection.

Staples

Metal fasteners used to bind together papers or other materials, or a basic or necessary item of a particular field.

Biopsy Specimen

A small amount of tissue removed from the body for examination under a microscope to diagnose an illness.

Cryosurgery

The use of extreme cold to destroy unwanted tissue, such as skin lesions.