Money left on the table in an IPO refers to which situation?

• A. The company priced it higher than it did
• B. Initial investors received more than expected
• C. The company could have priced the offering higher and raised more
• D. It is a regulatory concept unrelated to price

Answer: (C)

Money left on the table in an IPO is about foregone proceeds for the issuer. If the offering is priced too low relative to what the market would bear, the company could have set a higher price and raised more capital, leaving money on the table. That’s why the best description is the idea that the company could have priced the offering higher and raised more.

The other ideas don’t fit as well: underpricing often benefits early investors with a first-day price pop, but the phrase describes lost potential proceeds for the issuer, not necessarily who gains on day one. Pricing higher would reduce or eliminate the “money left on the table,” and it isn’t a regulatory concept unrelated to price.