Shares issued in an IPO usually trade significantly higher at the end of the first day of trading than the original IPO price.

Question

Quizplus · Accepted Answer

It is common for shares issued in an IPO to experience a surge in demand on the first day of trading, which can drive the price up significantly from the original IPO price. This is known as the "pop" and is often seen as a sign of investor confidence and interest in the company. However, this is not a guarantee and there have been instances where shares have traded lower on the first day.

Shares Issued in an IPO Usually Trade Significantly Higher at the End