dentify a statement which is not correct. IPO underpricing can be explained as:

Select one:

a.

The result of information asymmetry between investors and the issuing firm.

b.

IPO firms attempt to use its information advantage relative to outside investors to maximise the offer price relative to the potential post-listing share price.

c.

IPO firms attempt to signal its high quality and provide positive experience to investors, encouraging investors to invest in the firm via future seasoned offers.

d.

IPO firms (and underwriters) attempt to reduce probability of litigation by investors.