Which one of the following is probably the most effective means of increasing investors' interest in an IPO?   Multiple Choice   Extending the lockup period   Issuing the IPO through a rights offering   Underpricing the IPO   Eliminating the quiet period   Eliminating the Green Shoe option

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
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Which one of the following is probably the most effective means of increasing investors' interest in an IPO?

 

Multiple Choice
  •  

    Extending the lockup period

  •  

    Issuing the IPO through a rights offering

  •  

    Underpricing the IPO

  •  

    Eliminating the quiet period

  •  

    Eliminating the Green Shoe option

     

Expert Solution
Step 1

IPO refers to an initial public offering, when the company offers shares to the public for the very first time it is known as an initial public offering.

In order to issue IPO, the company must follow the rules and regulation of the security exchange board of India (SEBI)

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