Which One of the Following Statements Related to IPO Underpricing

Multiple Choice

Which one of the following statements related to IPO underpricing is correct?

A) The IPOs of larger-sized firms tend to be more underpriced than the IPOs of smaller-sized firms.
B) IPO underpricing is limited to the U.S. markets.
C) The percentage of underpricing remains stable over time in the U.S.
D) The only period in the U.S. when underpricing produced first day returns of 50 percent or more was during the tech bubble of 1999-2000.
E) Some of the greatest IPO underpricing has occurred in China.