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Initial Public Offering

C/F/12. Investment Banking. Are IPOs Systematically Underpriced?

WORDS:
3000
DATE:
2003
PRICE:
39.99 GBP

There is not one, but many explanations for the puzzle of underpricing in initial public offerings all over the world. Along with incentives for underpricing on the part of all sides, the underwriter, owners and investors, there are limitations to valuations techniques available driven by asymmetrical information and the costliness of research, which further drives underpricing to persist.

 

KEYWORDS: f, investment, banking, ipos, systematically, underpriced,

 
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