Multiple Choice
Which of the following is NOT true regarding overallotment options?
A) They are rarely used in IPOs.
B) They allow the underwriter to allocate an additional 15 percent of the shares of the firm engaging in an IPO.
C) They allow the underwriter to purchase additional shares at the IPO offer price.
D) They can be used to help stabilize the stock price in the days after an IPO.
Correct Answer:
Verified
Correct Answer:
Verified
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