Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Textbook Question
Chapter 11, Problem 2FPE
Why do you suppose that well-known companies such as Apple, Starbucks, and Facebook prefer to have their shares traded on the NASDAQ rather than on one of the major listed exchanges, such as the NYSE (for which they’d easily meet all listing requirements)? What’s in it for them? What would they gain by switching over to the NYSE?
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Should you invest in the stocks of a publicly traded company like Facebook? If yes why and if no why not? What is the competition like, regulation, manegement and the indutry.
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Explain, why majority of companies are still listed on local stock exchanges, even though the bigger exchanges provide better liquidity.
Chapter 11 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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- Describe what is IPO and what is involved in the IPO process. Do you think that it is better to buy shares in an IPO or shares in companies that are already listed on the stock exchanges? Why?arrow_forwardConsider the Facebook IPO in early 2012. Why do you think Zuckerberg decided to undertake an initial public offering at that time? In retrospect, do you think investors were receptive to the offering?arrow_forwardExplain, why majority of companies are still listed on local stock changes, even though the bigger exchanges provide better liquidity.arrow_forward
- You’ve probably noticed coverage in the financial press of an initial public offering (IPO) of a company’s securities. The social networking company Snapchat is a relatively recent example. Is an IPO a primary market transaction or a secondary market transaction?arrow_forward1. Suppose many investors are still interested in acquiring the shares of Company ABC after the initial public offering, what kind of Financial market should they go to from whom would they purchase this shares? 2. What would happen if there are no Financial market in the Financial system?arrow_forwardAll the following statements are incorrect about international equity markets except? a. In the international equity market, corporations cannot raise capital through IPOs, instead they can raise capital by trading in the secondary market. b. In the international equity market, corporations can easily manipulate the price of the shares since it is not regulated by any regulatory bodies. c. In the international equity market, corporations can only sell blocks of shares to Institutional investors from European Union. d. In the international equity market, corporations can sell blocks of shares to investors in a number of different countries simultaneously.arrow_forward
- what are the main causes of going down AstraZeneca's price per share according to the london stock exchange ?arrow_forward. On the day an IPO comes out, the market pricecan rise above the offering price or fall below thatprice. Is it more common for the market price toclose above or below the offering price on the dayof an IPO? If a company’s market price rises abovethe IPO price, does that suggest that the companyleft money on the table and thus received less for its shares than it should have received? If mostcompanies do leave money on the table, does thatindicate the IPO market is inefficient? How mightsystematic underpricing be explained? Has theamount of underpricing been constant over time?Explain.arrow_forwardwhy icatalyst Pharmaceuticals is a good stock to buy in US?arrow_forward
- What is the purpose of an initial public offering (IPO)? How does an investment bank facilitate the process? List and describe several recent IPOs. Discuss the advantages and disadvantages of an IPO.arrow_forwardGive typing answer with explanation and conclusion What is the benefit to a company from a securities underwriter? A) They generate demand for a company’s securities by giving them a strong credit rating B) They help companies to receive a premium on the sale of their securities C) They study the market and advise companies on where to set their IPO share price D) They help companies to reduce the risk associated with an IPOarrow_forwardWhat benefits might a company gain from having its shares listed on a stock exchange? +resourcesarrow_forward
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