Pass-Along Estimates Are Very Subjective and Using Them to Estimate

question 60

True/False

Pass-along estimates are very subjective and using them to estimate reach is speculative.

---

Definitions:

IPO Underpricing

The phenomenon where shares of a company are sold at a lower price during the initial public offering than the price at which they subsequently trade in the open market.

Offering Price

The price at which shares of a company are initially made available for purchase during an initial public offering or other issuance.

Firm Commitment

An underwriter's guarantee to the issuer to sell an entire offering of stocks or bonds at a set price.