Ritter's Study of Initial Public Offerings (IPOs) Showed That the Post

question 27

Multiple Choice

Ritter's study of Initial Public Offerings (IPOs) showed that the post offering stock performance was:

• A)less than the control group by about 2% in the five years following the IPO.
• B)incorrectly priced at issuance because over the next five years the abnormal returns were greater than zero on average.
• C)immaterial to the pricing of the IPO because future market performance is unknown at issuance.
• D)equal across IPOs, irrespective of risk or which year they were issued.
• E)All of the above.

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Definitions:

Hypothalamus

A small region of the brain that plays a crucial role in many important functions, including releasing hormones, regulating body temperature, and maintaining daily physiological cycles.

Ghrelin

A hormone produced in the stomach that stimulates appetite and signals the brain to increase food intake.

Leptin

A hormone produced by fat cells that regulates body weight by signaling the brain to reduce appetite and increase energy expenditure.

Insulin

A hormone produced in the pancreas that regulates the amount of glucose in the blood.