An underpriced offering represents a permanent lost opportunity to the issuing firm.

Question

Quizplus · Accepted Answer

An underpriced offering means that the issuing firm sold shares at a price lower than what the market was willing to pay. This translates to the issuing firm receiving less money than it could have potentially received if it had priced the shares correctly. Therefore, it represents a permanent lost opportunity to the issuing firm.

An Underpriced Offering Represents a Permanent Lost Opportunity to the Issuing