Going Public video

What does IPO stand for?

• Initial Public Offering

• Investment Portfolio Organization

• International Public Organization

• Individual Private Ownership

What happens when a company goes public?

• It becomes owned by a small number of investors

• It becomes owned by a large number of people

• It becomes a non-profit organization

• It becomes a government-owned entity

What is the purpose of going public?

• To raise cash for the company

• To reduce the number of shareholders

• To avoid regulatory oversight

• To limit the growth potential

Which companies can also stay private?

• IKEA, Mars, Aldi, and State Farm

• Facebook, Visa, and General Motors

• Snapchat, Alibaba, and Twitter

• Apple, Google, and Amazon

What is the role of an underwriting firm in the IPO process?

• To fund the IPO and buy the shares before they're listed

• To regulate the financial information disclosed by the company

• To determine the offering price of the shares

• To handle the registration with the U.S. Securities and Exchange Commission

How do underwriters make money in an IPO?

• By selling shares to the public for more than they paid the company

• By receiving a fixed fee from the company

• By investing their own money in the company

• By charging a commission on the IPO proceeds

What is the benefit of receiving equity as part of compensation in a private company?

• It allows the company to hire talented people without cash upfront

• It guarantees a high salary for the employees

• It provides tax benefits for the employees

• It ensures long-term job security

What did Evan Speigel, the founder of Snapchat, receive when the company went public?

• $636 million in stock grant

• $50 million in cash

• 2.6 million shares of the company

• All of the above

How many companies floated globally in 2017?

• 1,764

• 189

• 50

• 70

Which company had the biggest IPO in history?

• Alibaba

• Facebook

• Visa

• General Motors