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What is the main advantage of book building over the fixed price mechanism in IPOs?
  • a)
    Book building avoids all risks associated with IPOs.
  • b)
    Book building prevents over-subscription of shares.
  • c)
    Book building allows flexibility in pricing.
  • d)
    Book building guarantees higher profits for investors.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is the main advantage of book building over the fixed price mecha...
The main advantage of book building over the fixed price mechanism is that it provides flexibility in pricing shares. It allows companies to determine the price through a bidding process, leading to a more efficient and market-driven pricing mechanism.
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What is the main advantage of book building over the fixed price mechanism in IPOs?a)Book building avoids all risks associated with IPOs.b)Book building prevents over-subscription of shares.c)Book building allows flexibility in pricing.d)Book building guarantees higher profits for investors.Correct answer is option 'C'. Can you explain this answer?
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What is the main advantage of book building over the fixed price mechanism in IPOs?a)Book building avoids all risks associated with IPOs.b)Book building prevents over-subscription of shares.c)Book building allows flexibility in pricing.d)Book building guarantees higher profits for investors.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the main advantage of book building over the fixed price mechanism in IPOs?a)Book building avoids all risks associated with IPOs.b)Book building prevents over-subscription of shares.c)Book building allows flexibility in pricing.d)Book building guarantees higher profits for investors.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the main advantage of book building over the fixed price mechanism in IPOs?a)Book building avoids all risks associated with IPOs.b)Book building prevents over-subscription of shares.c)Book building allows flexibility in pricing.d)Book building guarantees higher profits for investors.Correct answer is option 'C'. Can you explain this answer?.
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