It can be argued that an IPO was overpriced when the IPO produces extraordinarily high rates of return on its first day of trading.

Name: It can be argued that an IPO was overpriced when the IPO produces extraordinarily high rates of return on its first day of trading.
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An IPO is considered underpriced if it produces extraordinarily high rates of return on its first day of trading, as it indicates that the initial offering price was set too low compared to the market's valuation.

It Can Be Argued That an IPO Was Overpriced When