Underpricing occurs
A) when additional shares are to be issued for companies with securities already publicly traded.
B) to aid in the market's reception of the securities.
C) in large secondary offerings.
D) all of the other answers are correct

Question

Quizplus · Accepted Answer

Underpricing can occur in various scenarios including when additional shares are to be issued for companies with publicly traded securities, to aid in the market's reception of the securities, or in large secondary offerings. Therefore, all of the other answers are correct.

Underpricing Occurs