The practice of ________ is allocating initially underpriced initial public offerings to executives in companies the investment bank hopes to do underwriting business with in the future.
A)discounting
B)spinning
C)peppering
D)wiring

Question

Quizplus · Accepted Answer

The practice described in the question is known as spinning. Spinning involves investment banks allocating underpriced IPOs to executives or influential people in the hopes of gaining future business from their company.

The Practice of ________ Is Allocating Initially Underpriced Initial Public