The bulk of most initial public offerings (IPOs) of equity securities goes to ________.

Question

Quizplus · Accepted Answer

Institutional investors, such as pension funds, mutual funds, and insurance companies, are typically the main buyers in an IPO because they have the funds to invest large sums of money and are seen as long-term investors. Individual investors and day traders may also participate, but they usually only receive a small portion of the shares. Current shareholders may sell some of their shares in the IPO, but the proceeds from the sale would go to them, not to the company.

The Bulk of Most Initial Public Offerings (IPOs) of Equity