Question: Initial Public Offerings Lightning Corp. has recently completed its Initial Public Offering. The stock was offered at a price of $14 per share. On the

Initial Public Offerings

Lightning Corp. has recently completed its Initial Public Offering. The stock was offered at a price of $14 per share. On the first day of trading, the stock closed at $19 per share.

  1. What was the initial return on Lightning Corp. stocks?

  2. Who benefited from this underpricing?

  3. Who lost from the underpricing, and why?

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