A considerable number of initial public offerings (IPOs) of stock in a company evidence a substantial run-up

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A considerable number of initial public offerings (IPOs) of stock in a company evidence a substantial run-up in price during early trading. Explain why asymmetric information between the investment banks organizing the offerings and prospective investors may be the reason for such a phenomenon.

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Microeconomics Theory and Applications

ISBN: 978-1118758878

12th edition

Authors: Edgar K. Browning, Mark A. Zupan

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