Question: 1) What do we mean by IPO underpricing? Briefly explain two reasons that could explain IPO under Pricing 2)Why are share Repurchases preferred over dividend?

1) What do we mean by IPO underpricing? Briefly explain two reasons that could explain IPO under Pricing

2)Why are share Repurchases preferred over dividend?

3) Briefly explain two ways that financial institutions could use securitization to reduce credit risk.

4) How do IPOs preform over the long-run? Briefly explain a reason/theory that could explain the long term performance of IPO's

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