Identify a statement or statements which are not correct. IPO underpricing can be explained as:

Statement One: IPO firms attempt to use its information advantage relative to outside investors to maximise the offer price (and offer proceeds) relative to the potential post-listing share price.

Statement Two: IPO firms (and underwriters) attempt to reduce the probability of litigation by investors.

Statement Three: 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.

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

a. Statement One

b. Statement Two

c. Statement Two and Three

d. Statement Four

e. None of the above