Which of the following is a possible exception to the


Which of the following is a possible exception to the efficient-market theory?

1. The long-run returns of IPOs tend to underperform the market.

2. IPO spreads are lower on larger issues.

3. Underwriters charge investors more for IPO shares than they pay the issuing firms.

4. The issuance of equity is interpreted as an unfavourable signal by investors.

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Financial Management: Which of the following is a possible exception to the
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