According to Economists, This Is the Main Reason for Underpricing

question 76

Multiple Choice

According to economists, this is the main reason for underpricing of new issues.

• A)Lack of competition among existing investment banks.
• B)Entry of banks into the investment banking sector.
• C)Monopoly power of the existing investment banks.
• D)Mismatch of demand and supply of securities.
• E)Risk premium for information advantage possessed by issuers.

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Definitions:

Computerized Scheduling

The use of computer programs and software to organize appointments, tasks, or events, improving efficiency and accuracy over traditional scheduling methods.

Stream Scheduling

A method used in computing and broadcasting for organizing data processing or transmission according to a predetermined sequence or time.

Time-specified Scheduling

An appointment system where patients are given specific times for their visits, aiming to reduce waiting periods and streamline the process.

Double-booking System

A method used in accounting that records each transaction in two accounts to ensure the balance sheet remains balanced.