The offer price of shares in an IPO is generally less than the price those shares sell for at the end of the first trading day. Which of the following parties suffer most from this situation?

Question

Quizplus · Accepted Answer

The buyers of shares after the initial offering suffer from this situation as they are buying the shares at a higher price compared to the offer price. The underwriters and lead underwriter may still make profits from the IPO, and the pre-IPO shareholders have already sold their shares at the offer price. Therefore, C is the most appropriate answer.

The Offer Price of Shares in an IPO Is Generally