In the five years after the offering, ___ underperform matched control groups.
A)initial public offerings
B)seasoned equity offerings
C)bond offerings
D)A and B
E)A, B, and C

Question

Quizplus · Accepted Answer

The sentence mentions both initial public offerings (IPOs) and seasoned equity offerings (SEOs), suggesting that they are the types of offerings being referred to. The sentence does not mention bond offerings, so E can be eliminated. The use of "underperform matched control groups" suggests that the performance of the offerings is being compared to a control group, rather than simply evaluating the performance in isolation. Studies have shown that both IPOs and SEOs tend to underperform compared to similar control groups in the years following the offering, making D the most likely choice.

In the Five Years After the Offering, ___ Underperform Matched