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A Rationale for the Underpricing of "Penny Stocks" Is

Question 282

Multiple Choice

A rationale for the underpricing of "penny stocks" is:


A) They must be underpriced to compensate investors for risk.
B) All stocks have a subscription price of $20.
C) They are not underpriced.
D) They don't pay dividends.
E) That when they are issued, dilution effects lower the share price.

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