Which One of the Following Statements Related to IPO Underpricing

question 54

Multiple Choice

Which one of the following statements related to IPO underpricing is correct?

• A)The IPOs of larger-sized firms tend to be more underpriced than the IPOs of smaller-sized firms.
• B)IPO underpricing is limited to the U.S. markets.
• C)The percentage of underpricing remains stable over time in the U.S.
• D)The only period in the U.S. when underpricing produced first day returns of 50 percent or more was during the tech bubble of 1999-2000.
• E)Some of the greatest IPO underpricing has occurred in China.