Which of the following statements about Hambrecht's Open IPO auctions is false?
A) The auctions are built on the principles of Dutch tulip auctions.
B) Auctions give small investors a chance to participate in IPOs.
C) Google Inc. and Morningstar Inc. have utilized the auction format in recent years.
D) Auctions are popular with institutional investors.

Question

Quizplus · Accepted Answer

The statement that auctions are popular with institutional investors is false. In fact, the Open IPO auction format was specifically designed to give small investors a better chance of participating in IPOs, and has been criticized by some institutional investors for potentially reducing the price they could achieve in a traditional IPO.

Which of the Following Statements About Hambrecht's Open IPO Auctions