Besides management and prior performance, what primary factors should be considered by the investor in a new issue?
A)The intended use of funds from the issue
B)Expected stock price in the secondary market
C)The investment banker handling the distribution
D)More than one of the above

Question

Quizplus · Accepted Answer

Other primary factors to be considered in the purchase of a new issue are: the intended use of the funds from the issue, and the investment banker handling the distribution, since they tend to under-price new issues.

Besides Management and Prior Performance, What Primary Factors Should Be