Which of the following is NOT a theory that has been suggested to explain empirical evidence that IPOs are initially underpriced?

a. litigation risk
b. the winner's curse
c. signaling (i.e., strategic underpricing)
d. the IPO market is inefficient

D

Business

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Gallup Foods produces a gourmet condiment that sells for $22 per unit

Variable cost is $8 per unit, and fixed costs are $6,000 per month. If Gallup expects to sell 2,000 units, compute the margin of safety in dollars. (Round any intermediate calculations to the nearest whole unit, and your final answer to the nearest dollar.) A) $34,571 B) $1,571 C) $6,000 D) $12,571

Business

One of the best ways to track the behavior of a test subject is through

A) surveying. B) observation. C) interviewing. D) metasearch analysis. E) representative sampling.

Business