An individual investor with a small portfolio who wishes to purchase 100 shares of an IPO is more likely to receive an allocation of shares when:
A) An IPO is substantially oversubscribed than when it is not.
B) They bid a higher amount as their offer price.
C) An IPO is underpriced than when it is correctly priced.
D) The odds are greater that the IPO will lose money once it commences trading.
E) The issuing firm is young and has minimal, if any, sales in the prior year.
Correct Answer:
Verified
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