How Do the Transaction Costs of IPO Puzzle Financial Economists

question 38

Essay

How do the transaction costs of IPO puzzle financial economists?

---

Definitions:

Historical Significance

The importance assigned to an event, person, or place based on its impact on history, its representative value, or its influence on present and future conditions.

John Dewey's Pragmatism

A philosophical doctrine that emphasizes the practical application of ideas by acting on them to actually test them in human experiences.

Progressive Era

A period in the late 19th and early 20th centuries in the United States during which widespread social, political, and economic reforms were enacted in response to the problems arising from industrialization, urbanization, and corruption.

Political Freedoms

Refers to the rights of individuals in a society to express their political views, engage in political activity, and participate in the governance of their country without undue interference.