Quiz Ch 15 – Causes of Underpricing in New Issues

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Why does underpricing of new issues tend to happen more often than overpricing?

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  • Search Terms: a) a be commitment. b) demand earn equity firm firms for frequently high. c) is issue issues issuing low more new occurs of one overpricing rates reason reduce return. d) risk than that that: the to too typically underpriced. underpricing underwriters want
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