Which one of the following is probably the most effective means of increasing investors' interest in an IPO?

Question

Quizplus · Accepted Answer

Underpricing the IPO is the most effective means of increasing investors' interest in an IPO as it offers investors an immediate and guaranteed return on investment. However, it may not be the best long-term strategy as it may lead to missed revenue opportunities for the company. The other options may not necessarily increase investor interest and may even have a negative impact. Extending the lockup period can limit the liquidity of the shares, issuing the IPO through a rights offering may not attract enough investors, eliminating the quiet period can violate securities laws, and eliminating the Green Shoe option may limit the flexibility of the underwriters.

Which One of the Following Is Probably the Most Effective