Ritter's Study of Initial Public Offerings (IPOs) Showed That the Post

question 46

Multiple Choice

Ritter's study of Initial Public Offerings (IPOs) showed that the post offering stock performance was:

• A) less than the control group by about 3.3% in the five years following the IPO.
• B) incorrectly priced at issuance because over the next five years the abnormal returns were greater than zero on average.
• C) immaterial to the pricing of the IPO because future market performance is unknown at issuance.
• D) equal across IPOs, irrespective of risk or which year they were issued.

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Definitions:

Unevenly Distributed

Refers to a situation where resources, values, or qualities are not spread out evenly or uniformly across a given area or among a group.

Demographics

Demographics involve statistical data relating to the population and particular groups within it, used for identifying target markets.

Advertising Media

Various platforms or channels through which promotional messages are communicated to the public, including television, radio, print, and digital formats.

Viewer Profiles

Information and data collected about viewers or users that describe their habits, preferences, and demographic details to inform content creation, marketing strategies, and personalized experiences.