IPOs are particularly attractive to companies during stock market declines because investors can buy the shares of stock for a low price.

Question

Quizplus · Accepted Answer

IPOs can be risky for companies during stock market declines as investors may be less willing to invest in new, unproven companies. Additionally, the low price of the shares may not necessarily attract investors if they perceive the company as too much of a risk.

IPOs Are Particularly Attractive to Companies During Stock Market Declines