Initial public offerings (IPOs)normally benefit what type of investors?

Question

Quizplus · Accepted Answer

IPOs normally benefit institutional investors as they have the resources and expertise to participate in the IPO process and usually receive priority allocation of shares at the offering price. Individual investors, on the other hand, may face difficulty getting access to IPO shares and may end up buying shares in the secondary market at a higher price. International investors may also face regulatory and logistical issues when participating in an IPO. Aggressive investors are not necessarily the only ones that benefit from IPOs, as there can be risks associated with buying shares in newly public companies.

Initial Public Offerings (IPOs)normally Benefit What Type of Investors