Alibaba Investors Expect Big Upside in First Day Trade

The video discusses the expectations and market impact of Alibaba's IPO, highlighting survey insights, the NYSE trading process, and potential market effects. It compares historical IPOs, noting exceptions like Facebook and GM, and explores Alibaba's strategic options post-IPO. The role of institutional investors in IPOs is also examined.

What was the general expectation of the stock's trading range on its first day according to the survey?

• Between $1 and $5

• Between $5 and $10

• Between $10 and $15

• Between $15 and $20

What is a potential knock-on effect of a major IPO like Alibaba's?

• Stability in stock prices

• Decreased investor interest

• Reduction in trading volume

• Increased market volatility

What is a common characteristic of major IPOs in relation to market trends?

• They always lead to market crashes

• They often occur at or near market tops

• They are unrelated to market trends

• They occur at market bottoms

What was unique about Facebook's IPO compared to other major IPOs?

• It was at a unique point in the company's development

• It was the smallest IPO in history

• It was driven by political factors

• It was timed with market cycles

What percentage of Alibaba's shares were free to trade immediately after the IPO?

• 13%

• 18.2%

• 50%

• 81%

Why might institutional investors be interested in Alibaba's IPO despite not typically buying IPOs?

• It has a guaranteed return

• It is a small-scale deal

• It is a unique opportunity

• It is already part of major indices

What strategic advantage does Alibaba have with the funds raised from the IPO?

• Opportunity to make acquisitions

• Requirement to return funds to investors

• Ability to reduce stock prices

• Obligation to increase dividends