Regarding IPOs, the primary motivation of the issuing firm and that of the investment banker are
A) the same-maximizing the price of the firm.
B) similar-completing the sale.
C) very different because they are compensated for different outcomes.
D) impossible to know since every deal is structured differently.

Question

Quizplus · Accepted Answer

The issuing firm aims to maximize the price of the firm, while the investment banker is often more focused on ensuring the IPO is successful and may prioritize a lower price to ensure all shares are sold.

Regarding IPOs, the Primary Motivation of the Issuing Firm and That