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someone help me the assigment is due in 1h

IPO underpricing: O is not related to underwriters reputation. O is higher for small and less known firms. tends to discoura

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Initial public offer underpricing is a scenario in which the price which are offered to the investors are significantly lower than the intrinsic value of the company and investor has a chance of making the money on the first day of listing.

Initial public offering under pricing will be higher for a smaller and less known firm, because they do not value their business regularly whereas larger companies will be generally valuing their business regularly and there is a very low scope of initial public offering underpricing

Correct answer will be option ( B) is higher for smaller and less known firm

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