Data from the marketplace show that the shares sold in an IPO are typically

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Data from the marketplace show that IPO shares are typically priced between 10 and 15 percent below the price at which they close at the end of the first day of trading. This pricing strategy is used to generate demand for the shares and to ensure a successful IPO launch. Investors who receive shares at the IPO price can then benefit from the price increase on the first day of trading.

Data from the Marketplace Show That the Shares Sold in an IPO