underpriced

un·der·price

(ŭn′dər-prīs′)

tr.v. un·der·priced, un·der·pric·ing, un·der·pric·es

1. To price lower than the real, normal, or appropriate value.

2. To sell at a lower price than (a competitor); undercut: one store that underpriced others of its kind.

American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

underpriced

(ˌʌndəˈpraɪst)

adj

(Commerce) (of an article for sale) priced at too low a level or amount

Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014

Translations

underpriced

[ˈʌndəˈpraɪst] ADJ [goods] → con un precio demasiado bajo

Collins Spanish Dictionary - Complete and Unabridged 8th Edition 2005 © William Collins Sons & Co. Ltd. 1971, 1988 © HarperCollins Publishers 1992, 1993, 1996, 1997, 2000, 2003, 2005

underpriced

[ˌʌndəˈpraɪst] adj (product) → in vendita a un prezzo inferiore al dovuto

Collins Italian Dictionary 1st Edition © HarperCollins Publishers 1995

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References in periodicals archive ?

The most striking result from these comparisons was the absence of any overpriced IPOs in hot markets--i.e., of the 721 IPOs that went public in times classified by the Ibbotson and Jaffe method as hot, all were underpriced. This contrasts with the underpriced sample which was almost evenly split between hot and cold markets (44% in hot and 56% in cold).

Conditional price trends in the aftermarket for initial public offerings

The firm knowingly agrees to be underpriced in order to give the investment banker the appropriate incentive to make the optimal distribution of its securities.

Does the choice of auditor convey quality in an initial public offering?

In the context of IPOs, Welch's arguments suggest that an issue may be underpriced in order to induce decisions by early investors solicited to purchase a forthcoming IPO.

The opening price performance of initial public offerings of common stock

Thus, whether the IPO is underpriced or not on the offer day is inconsequential to aftermarket investors' ability to sue or recover damages.

IPO underpricing and insurance against legal liability

Are anchor investors given disproportionate allocations in substantially underpriced IPOs?

Allocation to Anchor Investors, Underpricing, and the After-Market Performance of IPOs

"Are IPOs Really Underpriced?," The Review of Financial Studies 17(3): 811-848.

UNDERPRICING AND LONG-TERM PERFORMANCE OF IPOS: EVIDENCE FROM EUROPEAN INTERMEDIARY-ORIENTED MARKETS

But when market confidence is low and uncertainties abound, IPOs tend to be underpriced. Informed investors, who take up most of the allocation during this period, get discounts for taking additional risks.

Is it profitable to invest in IPOs?

Why new issues are underpriced. Journal of Financial Economics, 15, 187-212.

Underpricing and long-term market performance of initial public offerings in Indonesia: A quantile regression approach

Moreover, large IPOs tend to be less underpriced than smaller offerings.

Determinants of IPO Short Run and Long Run Performance: A Case Study on the Listed Firm of Pakistan Stock Exchange

Recent polls have shown rising support for the country's Labour Party against Prime Minister Theresa May's Conservative party, with a Labour victory underpriced by markets, much like the Brexit vote was.

UK elections: Are markets bracing for another Brexit-like sell-off?

In such a situation, the new shareholders will require the issue to be underpriced to compensate them for these potential costs.

UNDERPRICING AND NUMBER OF RISK FACTORS OF INITIAL PUBLIC OFFERINGS IN INDONESIA

When companies go public, the shares that are sold tend to be underpriced, in that the share price jumps on the first day of trading.