Over the last 50 years, I.P.O.'s in the United States have been underpriced by 16.8 percent on

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Over the last 50 years, I.P.O.'s in the United States have been underpriced by 16.8 percent on average. This translates to more than $125 billion that companies have left on the table in the last 20 years.

Briefly describe I.P.O underpricing.
How does underpricing translate into companies "leaving money on the table"?
Describe 3 possible explanations for the underpricing phenomenon.

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Sep 16, 2023 01:08 PM

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Over the last 50 years, I.P.O.'s in the United States have been underpriced by 16.8 percent on

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IPO Underpricing Initial Public Offering IPO underpricing refers to the situation where the offering price of a companys shares to the public is set l... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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