Answer Posted / bhupender janmejai
Historically, some of IPOs both globally
and in the United States have been underpriced.
The effect of "initial underpricing" an IPO
is to generate additional interest in the
stock when it first becomes publicly traded.
Through flipping, this can lead to
significant gains for investors who have
been allocated shares of the IPO at the
offering price. However, underpricing an
IPO results in "money left on the table"—lost
capital that could have been raised for
the company had the stock been offered
at a higher price.
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we can transfer stock between two firms with same name but prop. is different.
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