The Allocation Percentage Assigned to the Number of Shares Desired

question 321

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:

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