The following characteristics of IPOs are true except:
A) Are good deals for investors that buy them at offering and sell them quickly after
B) Have average first day returns of 40% in the U.S.
C) Are underpriced in every country where stocks are publicly traded
D) After the first day of trading usually underperform the market for several years

Question

Quizplus · Accepted Answer

The average first day returns of IPOs in the U.S. are typically around 15-20%, not 40%.

The Following Characteristics of IPOs Are True Except