What would your profit be? What profit do you actually expect? What principle have you illustrated? 1 answer below »
IPO Underpricing. The Sun Co. and the Moon Co. keep twain announced IPOs at S40 per distribute. One of these is undervalued by $7. and the other is overvalued by $3.50. but you keep no way of accomplished which is which. You drawing on buying 1,000 distributes of each offspring. If an offspring is underpriced. it obtain be rationed, and barely half your regulate obtain be assiduous. If you could get 1,000 distributes in Sun and 1,000 distributes in Moon. what would your acquisition be? What acquisition do you actually forebode? What element keep you artistic?