Asked by Nathan Vandervoort on Jun 10, 2024
Verified
The process of polling potential investors regarding their interest in a forthcoming initial public offering (IPO) is called ________.
A) interest building
B) book building
C) market analysis
D) customer identification
Initial Public Offering
The first sale of stock by a private company to the public, marking a transition from private to public ownership.
Book Building
A process by which an underwriter attempts to determine the price to offer for an initial public offering based on demand from institutional investors.
Polling
Polling refers to the process of conducting surveys to collect information or opinions from a selected group of individuals, often used in market research, politics, and social science.
- Gain insight into the mechanisms of initial public offerings (IPOs) and their common trends in market performance over duration.
Verified Answer
AB
Angie BailonJun 17, 2024
Final Answer :
B
Explanation :
The process of polling potential investors regarding their interest in a forthcoming initial public offering (IPO) is called book building. This process allows the underwriters to gauge demand and determine the optimal price for the IPO. It involves creating a "book" of indications of interest from potential investors, which helps the underwriters set the offering price and allocate shares.
Learning Objectives
- Gain insight into the mechanisms of initial public offerings (IPOs) and their common trends in market performance over duration.