If an IPO Is Underpriced Then The

Multiple Choice

If an IPO is underpriced then the:

A) investors in the IPO are generally unhappy with the underwriters.
B) issue is less likely to sell out.
C) stock price will generally decline on the first day of trading.
D) issuing firm is guaranteed to be successful in the long term.
E) issuing firm receives less money than it probably should have.