Question: Two common statistics in IPOs are underpricing and money left on the table. Underpricing is defined as percentage change between the offering price and the

Two common statistics in IPOs are underpricing and money left on the table. Underpricing is defined as percentage change between the offering price and the first day closing price. Money left on the table is the difference between the first day closing price and the offering price, multiplied by the number of shares offered. Calculate the underpricing and money left on the table for eBay. What does this suggest about the efficiency of the IPO process?

eBay, Inc., went public in September of 1998. The following information on shares outstanding was listed in the final prospectus filed with the SEC.
In the IPO, eBay issued 3,500,000 new shares. The initial price to the public was $18.00 per share. The final first day closing price was $44.88.

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