Research Paper Easy- Identify an initial public offering (IPO) that has been announced and completed at least 3 years back

Research Paper Easy- Identify an initial public offering (IPO) that has been announced and completed at least 3 years back

Identify an initial public offering (IPO) that has been announced and completed at least 3 years back (since 3-year post-IPO price performance is required).

Compute underpricing (1st day closing price – IPO price) / IPO price. Compare it with the market return on the IPO day.

Compare the stock performance with market (S&P500) performance over 3 year

following the IPO. Download historic stock returns from yahoo.com. Draw a graph of

compounded daily stock returns and compounded daily market returns from the 2nd

trading day to 3 years after the IPO. That is, 2nd day compounded return = (2nd day closing price – 1st day closing price) / 1st day

closing price 3rd day compounded return = (3rd day closing price – 1st day closing price) / 1st day

closing price