underpriced


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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.

underpriced

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

underpriced

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

underpriced

[ˌʌndəˈpraɪst] adj (product) → in vendita a un prezzo inferiore al dovuto
References in periodicals archive ?
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.
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.
On average, underpriced IPOs exhibit higher trading activity than overpriced IPOs (Miller and Reilly, 1987; Hanley, 1993; Schultz and Zaman, 1994; Zheng and Li, 2008), lower bid-ask spreads (Pham, Kalev, and Steen, 2003; Li, Zheng, and Melancon, 2005), and lower adverse selection costs (Li, McInish, and Wongchoti, 2005).
A score of 100 indicates that all markets in the index are underpriced and zero that all markets are fully priced.
The report shows that the most underpriced markets are to be found in regions outside of London, while most London markets are now fairly priced due to lower yields than those in the regions.
Another anomaly, that has considerably received more attention, is that IPOs appear to be substantially underpriced and exhibit positive first day returns on average (Ritter, 1984).
While underpricing cannot remove the allocation bias against uninformed investors (since the informed still buy the most underpriced offerings), the uninformed can now expect, on average, to at least break even (Jenkinson and Ljunqvist, 2001).
Chowdhry and Sherman (1996) argue that when the offer price is set before the consummation of the offering, the IPOs will be more underpriced.
Ghosh, Nag, and Sirmans (2000) claim that underpriced IPOs are likely to follow by seasoned equity offering in near future.
These results are driven by the level of SEO underpricing in the NASDAQ market where more than 80% of their SEOs are underpriced.
If the IPO price is less than its first day closing price, the company's shares were underpriced bu the underwriters in the IPO (Heeley, Matusik, & Jain, 2007).