On average, firms that have had IPOs tend to perform ____ over a period of a year or longer.

Question

Quizplus · Accepted Answer

On average, firms that have had Initial Public Offerings (IPOs) tend to underperform in the stock market over a period of a year or longer when compared to broader market indices like the S&P 500. This phenomenon is often attributed to the initial overvaluation during the IPO process and the subsequent market correction.

On Average, Firms That Have Had IPOs Tend to Perform