Plaintiffs filed a class action lawsuit against investment banks alleging that they inflated prices on more than 300 IPOs, causing IPO investors to overpay for stock, and unlawfully benefited these banks through overcompensation of banking commissions and profits made through quick sales of this stock in their own accounts before prices settled into a more realistic valuation. How would you combat such abuses going forward

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Business

Sincere Randolph

11 June, 09:17

Plaintiffs filed a class action lawsuit against investment banks alleging that they inflated prices on more than 300 IPOs, causing IPO investors to overpay for stock, and unlawfully benefited these banks through overcompensation of banking commissions and profits made through quick sales of this stock in their own accounts before prices settled into a more realistic valuation. How would you combat such abuses going forward

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Crystal · Answer 1

Answer: The answer is provided below

Explanation:

When we think about investment, individuals and firms should understand the risks before they invest their money, and also the loss risks.

When investing in a business or a corporation that you may work for, it is vital to understand and be clear on the fine print and also the 180-dayhold. It is vital on any purchase to understand the risks and rules which come along with it especially stocks.

It is crucial to the success of an individual, that research is done in order to make sure everything is understood prior to the stock sale.

On the other side, federal banking regulators committee should also do a better job with the investigations and the enforcements of bank and the stock regulations.