Supporting arguments in favor of ipo underpricing

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Which of the following are supporting arguments in favor of IPO underpricing:

I. Helps prevent the "winner's curse"

II. Provides better returns to issuing firms

III. Because issuing firms tend to be risky firms

IV. Rewards institutional investors who share their private information of the issuing firm

A. I and IV only

B. II and III only

C. II, III and IV only

D. I, III and IV only

E. I, II, III and IV

Reference no: EM133113379

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