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SOLVED: What is IPO underpricing? If you decide to try to buy shares in every IPO, will you necessarily make money from the underpricing? | Numerade

Having heard about IPO underpricing, I put in an order to my broker for 1,000 shares of every IPO he can get for me. After 3 months, my investment record is as follows:a. What is the average underpricing of this sample of IPOs?b. What is the average initial return on my "portfolio" of shares purchased from the four IPOs I bid on? Calculate the average initial return, weighting by the amount of money invested in each issue.c. Why have I performed so poorly relative to the average initial return o

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