Which of the following is FALSE about IPO underpricing? a) The average underpricing in US IPOs is between 15-20% B) IPOs in Europe and the Americas on average exhibit less underpricing compared to IPOs in Asian and Pacific markets C) The underpricing, and the subsequent large returns on the first day of trading, helps the firm receive more money for the shares offered in the IPO. D) Average IPO underpricing in the US is around 17%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter23: Corporate Restructuring
Section: Chapter Questions
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Which of the following is FALSE about IPO underpricing?

a) The average underpricing in US IPOs is between 15-20%

B) IPOs in Europe and the Americas on average exhibit less underpricing compared to IPOs in Asian and Pacific markets

C) The underpricing, and the subsequent large returns on the first day of trading, helps the firm receive more money for the shares offered in the IPO.

D) Average IPO underpricing in the US is around 17%.

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