Which One of the Following Statements About IPOs Is Not

question 26

Multiple Choice

Which one of the following statements about IPOs is not true?

• A)IPOs generally underperform in the short run.
• B)IPOs often provide very good initial returns to investors.
• C)IPOs generally provide superior long-term performance as compared to other shares.
• D)Shares in IPOs are often primarily allocated to institutional investors.

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Definitions:

Allocating

The process of assigning costs or resources among various projects, departments, or segments.

Predetermined

Established in advance or determined beforehand.

Lump-Sum Amounts

Single payments made for a group of items or services rather than individual transactions.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.