The Following Characteristics of IPOs Are True Except

question 114

Multiple Choice

The following characteristics of IPOs are true except:

• A) Are good deals for investors that buy them at offering and sell them quickly after
• B) Have average first day returns of 40% in the U.S.
• C) Are underpriced in every country where stocks are publicly traded
• D) After the first day of trading usually underperform the market for several years

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Definitions:

Operations

The activities and processes designed to deliver a product or service effectively and efficiently.

Transnational Corporations

Large companies that operate in several countries around the world, often having a significant impact on global trade, economy, and politics.

Poor Countries

Nations with low levels of economic productivity, low standards of living, and often lacking in the basic infrastructure and services necessary for a high quality of life.

Benefits

Forms of compensation provided to employees or members of a community, which may include health insurance, pensions, grants, or access to services and facilities.