A well-documented anomaly associated with IPOs is evidence that IPOs ___other stocks in the aftermarket for up to 3 years.
A)outperform
B)underperform

Question

Quizplus · Accepted Answer

A well-documented anomaly associated with IPOs is that they tend to underperform other stocks in the aftermarket for up to 3 years. This phenomenon has been observed and studied extensively in finance literature, suggesting that investors might be overly optimistic about the companies at the time of their IPOs, leading to inflated initial prices that do not hold up over time.

A Well-Documented Anomaly Associated with IPOs Is Evidence That IPOs