FINRA SIE Question Answer
Shares in a private investment in public equity (PIPE) offering are priced:
At the current market value per share.
Below the current market value per share.
Above the current market value per share.
At the public offering price (POP) as determined by the underwriters.
Step by Step Explanation:
PIPE Offerings: Typically priced below the current market value to incentivize institutional investors to participate in these transactions.
Discount: The discounted price compensates for the potential illiquidity and risk associated with PIPE offerings.
POP/Market Value: These do not apply to private offerings structured as PIPE transactions.
TESTED 02 Jan 2026
Copyright © 2014-2026 ACE4Sure. All Rights Reserved