Whether the assistant professor had a bad luck or should the professor have expected to do worse than the average initial public offering. Introduction: The private companies offer their stock for the first time to the public and this offering is termed as the initial public offerings . The private company that desire to become a publicly traded company usually offers the initial public offerings. The sale of the stocks below the true value is the underpricing.

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Chapter 15, Problem 9CRCT

Summary Introduction

To determine: Whether the assistant professor had a bad luck or should the professor have expected to do worse than the average initial public offering.

Introduction:

The private companies offer their stock for the first time to the public and this offering is termed as the initial public offerings. The private company that desire to become a publicly traded company usually offers the initial public offerings. The sale of the stocks below the true value is the underpricing.

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