Question of the day
2026-09-03
What factors push a bank to price an IPO at the top of the range (or raise the range) versus the bottom?
Answer it out loud first — like you would in the room. Then check yourself:
Reveal the model answer
Model answer
Top/raise the range: heavy oversubscription, price-insensitive limit orders, high-quality long-only demand, strong comps and sector momentum, scarce float. Bottom/cut: thin book, price-sensitive demand, deteriorating market conditions, weak sector sentiment, or concentration in hedge-fund flippers. The decision balances maximizing proceeds against ensuring the book is deep and sticky enough for a stable aftermarket.
Want 10 of these a day, scheduled so they stick?
A free account gets you Daily 10 — ten questions a day from the full 2,300+ bank, spaced-repetition scheduled. No credit card.
Tomorrow's question, in your inbox.
One real IB interview question every morning — free, one-click unsubscribe, nothing else ever.