From 1999 to 2014 the average ipo rose by 19 in its first


Question: From 1999 to 2014, the average IPO rose by 19% in its first day of trading. In 1999, 117 deals doubled in price on the first day. What factors might contribute to the huge first-day returns on IPOs? Some critics of the current IPO system claim that underwriters may knowingly underprice an issue. Why might they do this? Why might issuing companies accept lower IPO prices? What impact do institutional investors have on IPO pricing?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: From 1999 to 2014 the average ipo rose by 19 in its first
Reference No:- TGS02419488

Now Priced at $15 (50% Discount)

Recommended (96%)

Rated (4.8/5)