Below are the average initial returns are constructed for different countries, although all weight each IPO equally. In general, in countries where market prices are available immediately after offerings, the one-day raw return (offer price to close) is reported. Average initial returns on French, Japanese, and Taiwanese IPOs, by selling mechanism How can book-building and the roadshow be used as a superior mechanism in a marketing campaign? Elaborate in details b) In what ways underpricing appropriate then overpricing? Discuss
Below are the average initial returns are constructed for different countries, although all weight each IPO equally. In general, in countries where market prices are available immediately after offerings, the one-day raw return (offer price to close) is reported. Average initial returns on French, Japanese, and Taiwanese IPOs, by selling mechanism How can book-building and the roadshow be used as a superior mechanism in a marketing campaign? Elaborate in details b) In what ways underpricing appropriate then overpricing? Discuss
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Below are the average initial returns are constructed for different countries, although all weight each IPO equally. In general, in countries where market prices are available immediately after offerings, the one-day raw return (offer price to close) is reported.
Average initial returns on French, Japanese, and Taiwanese IPOs, by selling mechanism
How can book-building and the roadshow be used as a superior mechanism in a marketing campaign? Elaborate in details
b) In what ways underpricing appropriate then overpricing? Discuss.
Transcribed Image Text:Selling
Time Period
No IPOS
Average First
Mechanism
Day Return
FRANCE
Fixed Price
1992-1998
24
8.9%
Auctions
1992-1998
99
9.7%
Building Block
1992-1998
137
16.9%
JAPAN
Fixed Price
1973-1988
441
32.5%
Auctions
1989-1997
733
14.1%
Building Block
1997-2000
368
43.7%
TAIWAN
Fixed Price
1986-2005
241
34.6%
Auctions
1995-1998
52
7.8%
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