According to Multiple Studies by Ritter, Initial Public Offerings Tend

question 22

Multiple Choice

According to multiple studies by Ritter, initial public offerings tend to exhibit ________ performance initially and ________ performance over the long term.

• A) bad; good
• B) bad; bad
• C) good; good
• D) good; bad

---

Definitions:

EPS Fall

A decrease in Earnings Per Share, indicating that a company is generating less profit for each share of its stock.

Stock Dividend

A stock dividend is a dividend payment made in the form of additional shares rather than a cash payout.

Taxes

Compulsory financial charges or levies imposed by a government on individuals, corporations, and other entities to fund government spending.

Trading Range

The spread of prices at which a stock or other security trades over a certain period of time.