...Applied Corporate Finance | | | Submitted to: Mr.Asif MalikSubmitted by: Sana AmjadRoll no. 12L-5284MBA | | | | Department of management sciences | | The purpose of this assignment is to solve and study IPO in detail and provide the necessary solutions to it. Internet has been also used with referencing to seek out the solutions. Table of Contents Content | Page no: | Question A | 4 | Question B | 5 | Question C | 10 | Question D | 12 | References | | Question A: The IPO process is characterized by information asymmetries. Explain how these asymmetries may be reduced through the book-building process. IPO (initial public offering):- The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.IPO process, are asymmetrically informed as managers and internal subjects posses private information about the firm's future prospects which may be not completely known to external investors. The process by which an underwriter attempts to determine at what price to offer an IPO based on demand from institutional investors...
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