Studies have shown that,on average,new security issues are:

Name: Studies have shown that,on average,new security issues are:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Studies have shown that new security issues are typically underpriced, meaning their initial offering price is lower than their true market value. This is done to incentivize initial investors to buy shares, and the hope is that demand will drive up the price once trading begins. However, there are always exceptions to this trend and not all new security issues are underpriced.

Studies Have Shown That,on Average,new Security Issues Are