Underwriters sell most of the shares of an IPO to institutional investors.

Question

Quizplus · Accepted Answer

Underwriters are responsible for assisting companies in the IPO process by setting the initial price of the shares and selling them to investors. While retail investors may have access to IPO shares through their brokerage accounts, underwriters often sell the majority of the shares to institutional investors such as mutual funds, pension funds, and hedge funds.

Underwriters Sell Most of the Shares of an IPO to Institutional