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  3. Study Set
    Financial Management Theory and Practice Study Set 1
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    Exam 14: Initial Public Offerings Investment Banking and Financial Restructuring
  5. Question
    Why Does Underpricing Always Occur for an IPO
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Why Does Underpricing Always Occur for an IPO

Question 57

Question 57

Multiple Choice

Why does underpricing always occur for an IPO?


A) to guarantee sales by underwriters
B) to discourage oversubscription from investors
C) to reward customers by issuers
D) to protect investors from deceptive firms

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