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Other Fields Homework Help Finance Topic started by: trea48 on Jul 7, 2019



Title: What is the major reason that underwriters tend to offer stocks in an IPO at a price that is below ...
Post by: trea48 on Jul 7, 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


Title: What is the major reason that underwriters tend to offer stocks in an IPO at a price that is below ...
Post by: vvnluu on Jul 7, 2019
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Title: What is the major reason that underwriters tend to offer stocks in an IPO at a price that is below ...
Post by: trea48 on Jul 7, 2019
Smart ... Thanks!