uncertainty in value per share. And this uncertainty is positively correlated with IPO underpricing. Johnson and Miller (1988) test and prove this theory again. Ljungqvist et al. (2006) propose that issuers prefer to sell their IPO to regular investors. A group of people helps both maintain stock prices and extract additional value from sentimental investors. As they would expect a stock loss following the cessation of sentimental demand, the profit from an undervalued IPO is distributed as compensation to cover this potential.