Series 79 practice questionmediumBook Building and Pricing
What does it mean to tighten an IPO price range upward during marketing?
- AInvestor demand and valuation feedback are strong enough to support a higher expected price✓ Correct answer
- BThe issuer must reduce the deal size automatically
- CThe company is switching from equity to debt
- DThe prospectus can no longer be used
Explanation
Why A — Investor demand and valuation feedback are strong enough to support a higher expected price
Investor demand and valuation feedback are strong enough to support a higher expected price A higher range typically reflects stronger-than-expected order book development or positive market conditions. It is still the final pricing discussion, not a guarantee of where the shares will price.
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