Firms Underprice New Issues of Common Stock for the Following

Multiple Choice

Firms underprice new issues of common stock for the following reason(s) .

A) When the market is in equilibrium, additional demand for shares can be achieved only at a lower price.
B) When additional shares are issued, each share's percent of ownership in the firm is diluted, thereby justifying a lower share value.
C) Many investors view the issuance of additional shares as a signal that management is using common stock equity financing because it believes that the shares are currently overpriced.
D) all of the above.