Why is underpricing not a great concern with bond offerings? Use the following information to answer the next three questions. In January 2015, hamburger joint Shake Shack went public. Assisted by investment banks JP Morgan and Morgan Stanley, Shake Shack sold 5 million shares at $21 each, thereby raising a total of $105 million. By the end of the first day of trading, the stock had sizzled to $45.90 per share, down from a high of $52.50. Based on the end-of day numbers, Shake Shack shares were apparently underpriced by about $24.90 each, meaning that the company missed out on an additional $124.5 million.