When securities firms facilitate initial public offerings, they attempt to price the stock high enough to satisfy the issuing firm.

Question

Quizplus · Accepted Answer

Securities firms want to make sure the initial public offering (IPO) is successful, so they try to price the stock high enough to satisfy the issuing firm and attract investors, but not so high that investors are not interested in buying the stock.

When Securities Firms Facilitate Initial Public Offerings, They Attempt to Price