The one-day return to investors who purchase IPO shares at the IPO offer price are ____, and the returns to investors who purchase the shares a day after the IPO are generally ____.

Question

Quizplus · Accepted Answer

The one-day return to investors who purchase IPO shares at the IPO offer price are typically high due to the initial surge in demand, but the returns to investors who purchase the shares a day after the IPO are generally low as the market adjusts and the initial excitement fades.

The One-Day Return to Investors Who Purchase IPO Shares at the IPO