Free Version

Review Topics
Practice Exams
Buffalo can run up to 55 kilometers per hour. That's almost 35 mph, for our non-metric friends.

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. Odd legal term – like 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!

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

*Securities is a registered trademark of the College Board, which was not involved in the production of, and does not endorse this product.