Why are IPOs often underpriced?
Question:
Why are IPOs often underpriced?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
IPOs Initial Public Offerings are often underpriced for several reasons Risk Management Underpricing helps mitigate risk for investors participating i...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals Of Entrepreneurial Finance
ISBN: 9780199744756
8th Edition
Authors: Marco Da Rin, Thomas Hellmann
Question Posted:
Students also viewed these Business questions
-
An initial public offering (IPO) of a company's stock is considered "under-priced" if there is a large percentage difference between its issuing price and its closing price after one day of trading....
-
The vibrant market for Chinese IPOs in the United States was somewhat surprising given escalating trade tensions between the United States and China during 2018. However, for many Chinese tech firms,...
-
IPO underpricing is a worldwide phenomenon. In the United States, IPOs are on average underpriced by around 17 per cent, and in the United Kingdom they are underpriced by around 16 per cent. Most...
-
In Exercises 1126, determine whether each equation defines y as a function of x. x + y = 16
-
Bryan Eubank began his accounting career as an auditor for a Big 4 CPA firm. He focused on clients in the high-technology sector, becoming an expert on topics such as inventory write-downs, stock...
-
Navarro Corp. has no debt but can borrow at 5.9 percent. The firms WACC is currently 9.2 percent, and the tax rate is 21 percent. a. What is the companys cost of equity? b. If the firm converts to 25...
-
A study has three experimental units and two treatments-A and B. List all possible treatment assignments for the study. How many are there? In general, show that there are $2^{N}$ possible treatment...
-
Rockwall RV Centers accounting records include the following accounts at December 31, 2016. Cost of Goods Sold............$ 368,000 Accounts Payable............ 20,000 Rent Expense..................
-
Explain the two different ways to measure the real interest rate? Why can the nominal and real interest rates move in different directions?
-
What are the advantages and disadvantages of dual-class share listings?
-
What affects the optimal timing of exit?
-
On July 1, 2021, Apache Company, a real estate developer, sold a parcel of land to a construction company for $3,000,000. The book value of the land on Apaches books was $1,200,000. Terms of the sale...
-
Tariffs increase the overall efficiency of the world economy because a protective tariff encourages domestic firms to produce products at home, in theory, which could be produced more efficiently...
-
Ceteris paribus, assuming at the same time as the demand for electric car was increasing the federal government of Malaysia imposed a tax on electric car suppliers. Use demand and supply analysis to...
-
What I find more complex and difficult to model is possibility of making decision that will always produce the intended results, or offer you precise values of short and long-term gains. Do you think...
-
Choose a company such as McDonalds, Starbucks, Tim Hortons, Air Canada or other similar large company in Canada or the US which was negatively affected by Covid19. Compare the total revenue, total...
-
How does ERP help in optimizing inventory management within the supply chain?
-
Methamphetamine is a notorious street drug. One synthesis involves reductive amination of benzyl methyl ketone with methylamine. What is the structure of methamphetamine?
-
Which of the following statements is false? a. Capital leases are not commonly reported in a Capital Projects Fund. b. A governmental entity may report a Capital Project Fund in one year but not the...
-
How is data organized and stored within a data warehouse?. How does the structure of the data warehouse differ from that of an operational database? Please look online for examples of the data...
-
solve The Harvest Market in Champaign has a checkout area that uses a single-server system. The average checkout time is 1.5 minutes per customer. Assume that Coefficient of Variation for both...
-
How does Media Arts integrate emerging technologies such as augmented reality and machine learning to redefine narrative structures and audience engagement ?
Study smarter with the SolutionInn App