Which One of the Following Statements Concerning IPOs and Underpricing

question 62

Multiple Choice

Which one of the following statements concerning IPOs and underpricing is correct?

• 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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Intra-cranial

Referring to something occurring within the skull.

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Philosophers or thinkers who focus on practical consequences and applications of ideas to problems, valuing action over doctrine.

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The part of the mind that operates below the level of conscious awareness, influencing behavior and thoughts.

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The state or quality of having existence or substance, often contrasted with perceptions, illusions, or simulations.