Which of the Following Is Generally True of IPO Pops

question 65

Multiple Choice

Which of the following is generally true of IPO Pops?

• A)Most IPO Pops don't last and the stocks usually underperform.
• B)A rapid drop in price of the stock occurs when trading begins.
• C)The IPOs are overpriced and are rewarding to investors from the secondary market.
• D)The strategy useful only to high net worth investors.

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Definitions:

Correlation

A statistical measure that describes the extent to which two variables move in relation to each other.

Linear Relationship

A correlation between two variables where the change in one variable is proportional to the change in another.

Coefficient Of Skewness

A statistical measure that describes the asymmetry of the distribution of values in a data set around its mean.

Asymmetry

A situation where data or a distribution does not show symmetry and has one side that is different in shape or length from the other.