If the price of an initial public offering of stock rises,the windfall gain goes to the underwriter.

Question

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If the price of an initial public offering of stock rises, the windfall gain goes to the shareholders who bought the shares at the IPO price and then sold them at the higher market price. The underwriter earns a commission for their services in facilitating the IPO but does not receive any windfall gain from the price increase.

If the Price of an Initial Public Offering of Stock