Which Statement Is True

question 46

Multiple Choice

Which statement is true?

• A)IPO underpricing primarily benefits a firm's pre-issue owners.
• B)IPO underpricing is a function of the underwriting spread.
• C)The more an issue is underpriced, the more it tends to be oversubscribed.
• D)Underpricing tends to discourage investors from participating in the IPO market.
• E)Undersubscribed shares generally tend to also be underpriced shares.

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Definitions:

Testimonials

Statements from satisfied customers or users, endorsing the value or quality of a product or service.

Memorized Sales Presentation

A prewritten script used by salespeople to pitch a product or service consistently across different presentations.

Discussion Sequence

The ordered flow of topics or questions designed to guide a conversation or negotiation toward a desired outcome.

Sales Presentation

A pitch or demonstration given to a potential client or customer with the goal of promoting and selling a product or service.