Theipoprocessischaracterisedbyinformationasymmetries


The IPO process is characterised by information asymmetries. Explain how theseasymmetries may be reduced through the book-building process.b) Researchers have noticed that IPOs tend to be under-priced in the short-term and tounder-perform in the long-term. Explain how under-pricing and under-performance aremeasured in empirical studies and explain why these phenomena are observedc) Why might a company choose to list overseas?d) Companies that are listed on the London Stock Exchange must comply with, or givereasons for their non-compliance with the UK Code of Corporate Governance. Briefly explainthe Code's requirements with respect to independent directors. Do you believe that theserequirements deter relatively small companies from seeking a listing? Explain your response. #question..

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Finance Basics: Theipoprocessischaracterisedbyinformationasymmetries
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