Question

A stock with a ne price range of a final offer price of and a first-day closing price of is the best example of the partial adjustment phenomenon Ο Ο $4-576, S16 S16 Ο $10-512 S16: $15 Ο Ο S16-S18: S16 52 Ο S10-512 524, S24 Ο O Sn-S13, 522, 529

Answer 1

The answer is D.

According to K. W. Hanley in the paper titled "IPO underpricing and partial price adjustment" :

In general, issues that have good information revealed (final offer prices that exceed the offer range) have substantially greater initial returns than all other IPOs.

Hence according to this view, option D best fits the partial analysis phenomenon.