After the SEC approves the registration statement for the IPO, the biggest responsibility for the issuing company and the investment bank becomes ensuring that the determined number of securities is sold and the firm is able to raise the intended amount. The IPO team-including the investment bankers, senior management team, lawyers, and investor relations team--conducts various activities. Which of the following statements are true about the activities involved in the IPO process? Check all that apply. Investment bankers usually underprice the IPO so that the IPO is oversubscribed and investors who get to participate in the IPO generate high profits. % The underwriter selects institutional clients and takes the IPO team on a roadshow to make presentations to these clients across different cities. The investment banker estimates the potential demand for the securities by recording the number of shares that each investor is willing to buy. This is called book-building. During the roadshow, the IPO team can make forecasts and express their opinions about the projected value of the company after the IPO to lure institutional investors. In May 2011, LinkedIn issued its IPO, which was priced at $45 a share. On the first day of trading, it hit a high of $122.70. After six months of its IPO, the company's stock was trading at double the price of its IPO. the There are several theories that explain IPO underpricing. One of them is that underpricing likelihood of oversubscription, which the risk to the underwriter