Reduces potential lawsuits against underwriters

Assignment Help Financial Management

Reference no: EM131059118

All of the following are supporting arguments in favor of IPO underpricing except which one?

Helps prevent the “winner’s curse.”

Rewards institutions investors who share their market value opinions.

Reduces potential lawsuits against underwriters.

Diminishes underwriting risk.

Provides better returns to issuing firms.

Reference no: EM131059118

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