When securities firms facilitate an IPO, they attempt to price the stock
A)at a level that will enable institutional investors who invest in the IPO to earn reasonable returns.
B)high enough to satisfy the issuing firm.
C)at a level that will enable the securities firms to place the entire issue.
D)All of these are correct.

Question

Quizplus · Accepted Answer

All of these choices are correct because when securities firms facilitate an IPO, they aim to price the stock in a way that satisfies the issuing firm, enables institutional investors to earn reasonable returns, and allows the securities firms to place the entire issue successfully.

When Securities Firms Facilitate an IPO, They Attempt to Price