Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
4th Edition
ISBN: 9780134475561
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 14, Problem 2DC
Summary Introduction

Initial Public Offering (IPO):

The term IPO refers to the process through which a private company goes public by selling its stocks to the public. IPOs are managed and handled by underwriters. The lead underwriter is the chief banking institution that controls security issuance. The lead underwriter provides almost all advices on the sales and arrangement for underwriters, termed as “syndicate” to assist the market and sell the issues profitably.

To do: Visit Google Finance and search for FB’s closing price and return on day of IPO. Also, compare the return on the IPO day with a typical IPO.

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