Economy, asked by saidev4922, 1 year ago

Ipos are usually underpriced. Explain what is meant by underpricing

Answers

Answered by kiriti23
1
I don't know.................
Answered by Jerrysinisterj
0

Answer:

IPOs are usually under priced in order to boost demand in the market

Explanation:

An IPO may be under priced deliberately in order to boost demand and encourage investors to take a risk on a new company. It may even be under priced accidentally because its underwriters underestimated the demand in the market for this company's stock

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