If an IPO Is Underpriced Then The

question 4

Multiple Choice

If an IPO is underpriced then the:

• A)investors in the IPO are generally unhappy with the underwriters.
• B)issue is less likely to sell out.
• C)stock price will generally decline on the first day of trading.
• D)issuing firm is guaranteed to be successful in the long term.
• E)issuing firm receives less money than it probably should have.