This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the major reason that underwriters tend to offer stocks in an IPO at a price that is below ... (Read 56 times)

erika

  • Hero Member
  • *****
  • Posts: 522
on: Jul 9, 2019
What is the major reason that underwriters tend to offer stocks in an IPO at a price that is below that which the market will pay?
◦ to reduce their exposure to losses from unsold stock
◦ to benefit from greenshoe provisions
◦ to increase their spread
◦ to gain from the rise in value of any stocks they hold after the IPO
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by erika on Jul 9, 2019

ultraflyy23

  • Sr. Member
  • ****
  • Posts: 312
Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


erika

  • Member
  • Posts: 522
Reply 2 on: Jul 9, 2019
:D TYSM

raenoj

  • Member
  • Posts: 340
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

The Coronary Arteries and Major Veins of the Heart (Anterior and Inferior Views) The Coronary Arteries and Major Veins of the Heart (Anterior and Inferior Views)
Major features of Homo erectus include increased brain size, an angular vault, and cranial superstru Major features of Homo erectus include increased brain size, an angular vault, and cranial superstru
Major Events in the History of Psychology Major Events in the History of Psychology
Summary of major brain structures. Summary of major brain structures.
Major Effects of Thyroid Hormone in the Body Major Effects of Thyroid Hormone in the Body
Vitamin D plays a major role in bone health Vitamin D plays a major role in bone health
Video: Double Vacuum Process (Illustration No Audio)

For a complete list of videos, visit our video library