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

Question $7$ Select one:

a$.$

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

b$.$

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

c$.$

IPO firm$$s 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.

d$.$

IPO firm$$s $($and underwriter$$s$)$ attempt to reduce the probability of litigation by investors.