The Evidence on IPO Sales Is Varied from Issue to Issue,but

question 73

Essay

The evidence on IPO sales is varied from issue to issue,but there are three common themes; underpricing,underperformance,and the reasons for going public. Explain these three themes.

Understand social comparison processes and their effects on self-perception.

Explain psychological strategies for coping with failures or negative feedback.

Distinguish between realistic and unrealistic optimism in self-perception.

Understand the concept of self-esteem and its variations among individuals.

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Definitions:

Kohlberg's Principles

A theory of moral development proposed by Lawrence Kohlberg, describing how individuals evolve their understanding of morality through different stages.

Universal

Pertaining to or affecting all members of a class or category without exception; applicable everywhere or in all cases.

Instrumental Purpose

The use of rational calculation to achieve individual goals, often highlighted in moral development or decision-making scenarios.

Kohlberg's Stage

Refers to one of the stages in Lawrence Kohlberg's theory of moral development, detailing the progression of moral reasoning from childhood through adulthood.