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Research cited says IPOs have historically underperformed the market by about:

A14 percent
B4 percent
C40 percent
D44 percent
Answer & Solution
Correct answer: B. 4 percent
1. Buying right after listing is risky. 2. The shortfall is measured per year. 3. It is about 4 percent a year. _Source: OpenStax Principles of Finance, Chapter 12, US Financial Markets._
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