Question: What does the term under-pricing refer to? If the average IPO is underpriced by about 15 percent, how could an unsophisticated investor, who regularly invests

What does the term under-pricing refer to? If the average IPO is underpriced by about 15 percent, how could an unsophisticated investor, who regularly invests in IPOs, earn an average return less than 15 percent?

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Underpricing refers to the fact that IPO shares typically rise on the fir... View full answer

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