Why Is It So Difficult to Determine the Appropriate Price

question 17

Essay

Why is it so difficult to determine the appropriate price for an IPO? Who do you think has the most input: the issuing firm, the underwriter, or investors? Explain.

---

Definitions:

Water Fade

A decrease in the performance of brake components due to the presence of water.

Disc Brakes

A type of brake system that uses calipers to squeeze pairs of pads against a disc or rotor to create friction, slowing the rotation of the wheels.

Drum Brakes

A type of brake that uses friction caused by a set of shoes or pads that press outward against a rotating cylinder-shaped part known as a drum.

Phenolic Plastic

A type of plastic made by polymerizing phenols and aldehydes, used in electrical and mechanical components due to its insulating and heat-resistant properties.