Lunar Excursions wants to do an IPO but is very uncertain that underwriters will set the most optimal offer price for the securities.Which one of the following might the firm consider to address this uncertainty?

Question

Quizplus · Accepted Answer

Lunar Excursions should consider Dutch auction underwriting. This method involves allowing investors to bid for the securities and the underwriter setting the price based on the highest bids received. This allows for market demand to set the price and can potentially result in a more optimal offer price for the securities.

Lunar Excursions Wants to Do an IPO but Is Very