Despite relatively high first-day returns for U.S.IPOs,on average IPOs tend to underperform relative to the market in the first three to five years following their issuance.

Question

Quizplus · Accepted Answer

It is true that on average, IPOs tend to underperform relative to the market in the first three to five years following their issuance, despite relatively high first-day returns. This is a well-documented phenomenon in finance literature.

Despite Relatively High First-Day Returns for U