The term "leaving money on the table" refers to the situation where an investment banking house makes a very low bid for the right to underwrite a firm's new stock offering.The banker is, in effect, "buying the job" with the low bid and thus not getting all the money his firm would normally earn on the job.

Question

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The term "leaving money on the table" refers to pricing an initial public offering (IPO) below its market value, resulting in less capital raised for the company than could have been achieved with a higher price. It does not refer to an investment bank making a low bid to underwrite a firm's new stock offering.

The Term "Leaving Money on the Table" Refers to the Situation