Historically, IPO Underpricing

question 329

Multiple Choice

Historically, IPO underpricing:

• A) Ranges between 2 and 30 percent.
• 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 percent on occasion.

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Definitions:

Consumption

The consumption of products and services by families, an essential element in measuring a nation's Gross Domestic Product (GDP).

Savings

The portion of disposable income not spent on consumption of goods and services, often placed in a deposit account.

Disposable Income

Funds apportioned to households for saving and spending after the settlement of income taxes.

Consumption

Domestic consumption of goods and services by households.