Which One of the Following Is Probably the Most Effective

question 58

Multiple Choice

Which one of the following is probably the most effective means of increasing investors' interest in an IPO?

• A)Extending the lockup period
• B)Underpricing the IPO
• C)Eliminating the quiet period
• D)Issuing the IPO through a rights offering
• E)Eliminating the Green Shoe option

---

Definitions:

Expert Power

The influence and authority someone has due to their specialized knowledge or expertise.

Coercive Power

A form of power that is based on the ability to deliver punishments or impose sanctions on others.

Referent Power

is the influence one has over others based on their loyalty, respect, or admiration towards the person.

Expert Power

Influence or authority derived from the expertise, skills, or knowledge that a person has in a particular area.