Question: Case 4A: Palm IPO: Write a short report (not more than 5 pages, double-spaced), developed around the following: Explain whether any of the three IPO

Case 4A: Palm IPO:

  • Write a short report (not more than 5 pages, double-spaced), developed around the following:
    1. Explain whether any of the three IPO phenomena (hot issue market, initial underpricing, and long-term underperformance) apply in regard to the Palm IPO.
    2. Is the Palm IPO an extreme case or is the observed scenario common?
    3. Explain whether Palm and 3Com were efficiently priced on Palms first day of trading.
    4. Analyze the assessment of Palm made by analyst Paul Sagawa.

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