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If a Firm Commitment IPO Is Overpriced Then The

Question 40

Multiple Choice
If a firm commitment IPO is overpriced then the:

If a firm commitment IPO is overpriced then the:


A) investors in the IPO may consider suing the underwriters.
B) Green Shoe provision will probably be utilized.
C) stock price will generally increase on the first day of trading.
D) issuing firm is guaranteed to be successful in the long term.
E) issuing firm receives less money than it probably should have.

Correct Answer:

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