Empirical evidence suggests that, on average, the shares in initial public offerings have not been significantly underpriced.

Question

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Empirical evidence consistently shows that shares in initial public offerings (IPOs) are often significantly underpriced. This underpricing is observed as a common phenomenon where the shares' prices surge on the first day of trading, indicating that the initial offering price was set too low compared to the market's valuation.

Empirical Evidence Suggests That, on Average, the Shares in Initial