Which one of the following is probably the most effective means of increasing investors' interest in an IPO?

Question

Quizplus · Accepted Answer

Underpricing the IPO is likely to attract more investors as they may see it as an opportunity for quick profits. However, underpricing can also result in leaving money on the table for the issuing company. The other options are not likely to increase investors' interest in the IPO. Extending the lockup period, eliminating the quiet period, and eliminating the Green Shoe option are all clauses that protect the investors in different ways and not having them could be seen as risky for potential investors. Issuing the IPO through a rights offering may not necessarily increase interest as it limits the offering to existing shareholders.

Which One of the Following Is Probably the Most Effective