Explain winners curse when maloney

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Maloney, Inc. has decided to sell 2,500 shares of stock. The bids received are as follows: Bidder A, quantity 500 price/share $23; Bidder B quantity 800 price/share; Bidder C quantity 1,000 price/share $21; Bidder D quantities 1,500 price/share $20; Bidder E quantities 2,500 price/share $19. a If Maloney, Inc with the 2,500 shares via a Dutch auction how much equity capital is raised? b. If Maloney, Inc sells the 2,500 shares via a discriminatory auction, how much equity capital is raised? c. Explain "winner's curse" when Maloney, Inc sells the shares via discriminatory auction.

Reference no: EM13721978

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Explain winners curse when maloney : Maloney, Inc. has decided to sell 2,500 shares of stock. The bids received are as follows: Bidder A, quantity 500 price/share $23; Bidder B quantity 800 price/share; Bidder C quantity 1,000 price/share $21; Bidder D quantities 1,500 price/share $20; ..
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