Monthly archive: December, 2009
What determines the number of shares the company has to sell in an IPO?the money they need?

Anisha asks:
Lets say a company(400,000 shares) wants to raise $1 million by selling half of the company(200,000 shares). would each share cost 5$?
If the same company wants to mainatin 70% of it’s shares(280,000) by selling only 120,000 shares, would each share cost $8.333?
Lets say a company(400,000 shares) wants to raise $1 million by selling half of the company(200,000 shares). would each share cost 5$?
If the same company wants to mainatin 70% of it’s shares(280,000) by selling only 120,000 shares, would each share cost $8.333?
This is my understaing of IPOs, so please if something wrong please tell me.
thank you
lithium
I didn’t understand?on what basis?
What are some factors that could influence a capital budgeting analysis?

Cinda asks:
were in the process of merging two companies together and someone asked me this question and I wasnt sure what they meant… any suggestions? What do you think is the best investment and financing option(s) when merging two large companies for growth? What about releasing an IPO, bonds, leases and retained earnings for addiontal funds? Any suggestions?
were in the process of merging two companies together and someone asked me this question and I wasnt sure what they meant… any suggestions? What do you think is the best investment and financing option(s) when merging two large companies for growth? What about releasing an IPO, bonds, leases and retained earnings for addiontal funds? Any suggestions?
When should i sell my IPO? I bought some IPO and its value doubled in the first week?

Tifany asks:
Everybody i know tell me to hold on to them until the future; i believe that doubling up is more then enough of a profit; but people always talk about other IPOs from the past whose value today is is 50X its IPO value…
i guess what im saying is what are the odds of that? and is it really better to hold on or sell the IPO and reinvest
just some additional info; since im not in the US.
We do not pay taxes on it; IPOs here typically 1 comes out every month, and typically within the end of the week its value doubles.
Everybody i know tell me to hold on to them until the future; i believe that doubling up is more then enough of a profit; but people always talk about other IPOs from the past whose value today is is 50X its IPO value…
i guess what im saying is what are the odds of that? and is it really better to hold on or sell the IPO and reinvest
just some additional info; since im not in the US.
We do not pay taxes on it; IPOs here typically 1 comes out every month, and typically within the end of the week its value doubles.
(im liking the sell half idea)
and the reason for buying… well its value , typically, doubles up by the end of the week lol
How will EMC’s IPO spin-off of VMWare affect my call options on EMC?

Young asks:
EMC’s VMWare is being touted as the biggest IPO since Google went public in 1994. I have January 2010 call options with a strike price of $17.50 on EMC. EMC is currently trading in the $19 to $20 range and word has it that the IPO will be priced between $20 and $25. Obviously we won’t be getting one share of VMWare for each share of EMC. So with each options contract being for a lot of 100 shares of stock, we can’t be getting an options contract for VMWare. So what do options investors get in the case of an IPO spin-off like this?
EMC’s VMWare is being touted as the biggest IPO since Google went public in 1994. I have January 2010 call options with a strike price of $17.50 on EMC. EMC is currently trading in the $19 to $20 range and word has it that the IPO will be priced between $20 and $25. Obviously we won’t be getting one share of VMWare for each share of EMC. So with each options contract being for a lot of 100 shares of stock, we can’t be getting an options contract for VMWare. So what do options investors get in the case of an IPO spin-off like this?




























