FUND. OF CORPORATE FINANCE W/ACCESS >I
FUND. OF CORPORATE FINANCE W/ACCESS >I
15th Edition
ISBN: 9781323510728
Author: Berk
Publisher: PEARSON
Question
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Chapter 14, Problem 6CT
Summary Introduction

Initial Public Offering (IPO):

The term IPO refers to the process through which a private company goes public by selling its stocks to the public. IPOs are managed and handled by underwriters. The main underwriter is the chief banking institution that controls security issuance. It is the main underwriter that provides almost all advices on the sales and arranges underwriters, termed as “syndicate” to assist the market and sell the issues profitably.

To determine:

The method by which the price is set in an auction IPO.

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