The offer price of shares in an IPO is generally less than the price those shares sell for at the end of the first trading day.Which of the following parties suffer most from this situation?

Question

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Buyers of shares after the initial offering suffer the most because they end up paying more for the same shares than the IPO price. This is known as the "IPO pop." The underwriters, pre-IPO shareholders, and lead underwriter may benefit from the situation as they can sell their shares at a higher price. The buyers of shares at the end of the first trading day may also benefit if the price continues to rise, but they do not suffer as much as those who bought after the IPO.

The Offer Price of Shares in an IPO Is Generally