Examlex
Provide two arguments in favor of IPO underpricing and two arguments against IPO underpricing.
Competitive Price-searcher
A market participant who sets prices through active search and strategy, often in markets with some degree of product differentiation.
Product Diversity
The variation of products and services offered in a market to meet different customer needs and preferences.
Firms Exit
This occurs when businesses cease operations and leave a market, typically due to factors like unprofitability, competitive pressures, or changing market conditions.
Competitive Price-searcher
This refers to a market situation where companies set their prices based on competition and market conditions, aiming to attract customers by offering better deals than their rivals.
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