Large, prestigious investment banking houses generally provide lower initial returns to investors on new issues underwritten.

Question

Quizplus · Accepted Answer

Research studies indicate that large, prestigious investment banking houses do not generally provide the highest initial returns to investors in the new issues they underwrite. The reason for this is that the upper-tier investment bankers tend to underwrite the issues of the strongest firms coming into the market.

Large, Prestigious Investment Banking Houses Generally Provide Lower Initial Returns