Which of the following is a characteristic(s)of initial public offerings (IPOs)?

Question

Quizplus · Accepted Answer

Institutions, such as hedge funds and investment banks, are typically the largest investors in IPOs due to the high risk and potential reward that comes with investing in a newly public company. The general public may have the opportunity to invest in an IPO, but it is usually limited and typically reserved for institutional investors or high net worth individuals. IPOs are also not known for being very stable, as the stock price can be volatile in the first few months after going public. Additionally, IPOs are a primary market transaction, not a secondary market transaction.

Which of the Following Is a Characteristic(s)of Initial Public Offerings