Question

A company registers an IPO on a website. All the shares on this website are available for bidding for a particular time frame called the bidding window. What is the purpose of the bidding window?

1) To determine the initial price of the shares
2) To allow potential investors to place bids for the shares
3) To restrict the number of shares available for bidding
4) To provide information about the company's financial performance

Answer 1

The purpose of the bidding window in an IPO is to allow potential investors to place bids for the shares.

Step-by-step explanation:

The purpose of the bidding window in an IPO is to allow potential investors to place bids for the shares.

During the bidding window, interested investors can submit their bids indicating the quantity of shares they want to buy and the price they are willing to pay.

The company then reviews the bids and determines the allocation of shares based on factors such as price, demand, and the overall objective of the IPO.