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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 28 times)

erika

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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
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Marked as best answer by erika on Jul 9, 2019

ultraflyy23

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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.
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erika

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Reply 2 on: Jul 9, 2019
Wow, this really help

miss.ashley

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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