Problem

a Why is underpricing a cost to the issuing firm?b Suppose a stockbroker calls you up out...

a Why is underpricing a cost to the issuing firm?


b Suppose a stockbroker calls you up out of the blue and offers to sell you “all the shares you want” of a new issue. Do you think the issue will be more or less underpriced than average?

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Solutions For Problems in Chapter 15