The conversation between human and AI assistant.
What are the ways by which overpricing and underpricing of IPOs can be reduced/stopped?
Are there any regulatory or legal methods to reduce underpricing and overpricing of IPOs?
Yes, governments can create laws and regulations to help prevent underpricing or overpricing of IPOs. For example, they can require companies to disclose more information about their finances, operations, and management. They can also set rules for how companies can launch their IPOs, such as requiring them to go through an approved stock exchange and follow specific listing requirements.