What does underpricing in an IPO refer to?

A. Selling shares only to insiders
B. Offering shares below the market value at IPO
C. Issuing shares at par value only
D. Discounting shares during a buyback
E. Selling shares without a prospectus

✅ Correct: B. Underpricing means the IPO share price is set below expected market value, often leading to a first-day stock price increase.