What is meant by underpricing? Why are most IPOs underpriced? Drawing on the academic evidence, explain the

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What is meant by underpricing? Why are most IPOs underpriced?

Drawing on the academic evidence, explain the main theories behind this phenomenon. Is this is a sign of market inefficiency? Explain.

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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