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Author Question: What is the major reason that underwriters tend to offer stocks in an IPO at a price that is below ... (Read 53 times)

erika

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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


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Marked as best answer by erika on Jul 9, 2019

ultraflyy23

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erika

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Reply 2 on: Jul 9, 2019
Excellent


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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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