Essentials of Corporate Finance
Essentials of Corporate Finance
8th Edition
ISBN: 9780078034756
Author: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 15.5, Problem 15.5ACQ
Summary Introduction

To think critically about: The reason for considering underpricing as a cost to the firm that issues securities.

Introduction:

The aggregation of the sellers and buyers of the stocks that represents the ownership claims of their business is a stock market that is also referred as the equity market. The stock market also includes the securities that are listed in the public stock exchanges. The sale of the stocks below the true value is the underpricing.

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