Dashboard
Review Topics
Drills
Practice Exams
Flashcards
Vocabulary
I'm a big believer in visualizing success. I was a late bloomer, but Mom always told me to picture myself as the largest land mammal in North America. Now who's the size of a small pickup truck? This buffalo.

Three Paths to an IPO

There are three ways an underwriter commits to love, honor, and eBay when they are taking a company public.

  • Best efforts. This is an odd legal term. What would "worst efforts" be? In practice, best efforts means that the underwriter is committed to only buy securities as a reseller or agent, not as a principal. They buy them and then turn around and dump—er, sell them. One of the big issues underwriters deal with is the question, "How much is enough?" That is, would Facebook still go public ...

Looking for more? Why is this annoying box in the way? It's because you haven't paid for the course yet!

$24.68
Next: Trading Through the IPO  
  Prev: Pricing Facebook for the Public