Stock Issued in an IPO Usually Trades Significantly Higher at the End

question 73

True/False

Stock issued in an IPO usually trades significantly higher at the end of the first day of trading than the original IPO price.

---

Definitions:

Substitutes

Products or services that can be used in place of each other.

Substitutes

Products or services that can be used in place of one another, where an increase in the price of one leads to an increased demand for the other.

Complements

Goods or services that are used together, where an increase in the consumption of one leads to an increase in the consumption of the other.

Law of Supply

The principle that, other things equal, an increase in the price of a good leads to an increase in the quantity supplied, and vice versa.