Which One of the Following Statements Related to IPO Underpricing

question 6

Multiple Choice

Which one of the following statements related to IPO underpricing is correct?

• A)The IPOs of larger-sized firms tend to be more underpriced than the IPOs of smaller-sized firms.
• B)The only period in Australia when underpricing produced first-day returns of 50 per cent or more was during the tech bubble of 1999-2000.
• C)Some of the greatest IPO underpricing has occurred in China.
• D)The percentage of underpricing remains stable over time in Australia.
• E)IPO underpricing is limited to the Australian market.

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