Question

In: Accounting

Do some research into companies that have had an IPO (initial public offering) in the last...

Do some research into companies that have had an IPO (initial public offering) in the last couple of years and answer the following questions:

1. How is their stock performing compared to the IPO? Were they over hyped initially?

2. Do you invest in stock, why or why not? If you do, how do you determine what to invest in?

PLEASE DO NOT USE UBER TECHNOLOGIES! thank you!!

Solutions

Expert Solution

1. BioNTech -  IPO @$15    Current Price - $84.27
Applied Therapeutics - IPO @$10.00    Current Price - $21.35

We see that the share price has performed really well. They were not over hyped initially becuase we can see the shares price almost double and 6 times, so this shows that they performed really well. People have trusted on these shares and they gave a good return!

2. No, I don't invest in stocks because they are so volatile and the market crashes in the past has proved that stock market is not safe because when it hits all the stocks go down and then you don't get the diversification benefit as well and you might have to book a huge losses and it's just like betting whether the price would go up or down just like you toss a coin and if it's head you think it will go up and if it's tail it will go down!



PLEASE LIKE THE ANSWER IF YOU FIND IT HELPFUL OR YOU CAN COMMENT IF YOU NEED CLARITY / EXPLANATION ON ANY POINT.




Related Solutions

Suppose that on average, there are 15 companies making their initial public offering of stock (IPO)...
Suppose that on average, there are 15 companies making their initial public offering of stock (IPO) each month. Write down the corresponding Poisson formula for a)-c), then use R to get the final answers. a) What is the probability of few than 3 IPOs in a month? b) What is the probability of at least 15 IPOs in a month? c) What is the probability of few than 30 IPOs in a two-month period?
A Direct Public Offering (DPO, Direct-Listing) is an alternative to an Initial Public Offering (IPO) in...
A Direct Public Offering (DPO, Direct-Listing) is an alternative to an Initial Public Offering (IPO) in which a company does not work with an investment bank to underwrite the issuing of stock. While forgoing the safety net of an underwriter provides a company with a quicker, less expensive way to raise capital, the opening stock price will be completely subject to market demand and potential market swings. In a DPO, instead of raising new outside capital like an IPO, a...
An Initial Public Offering (IPO) is a major milestone for a company. This is a very...
An Initial Public Offering (IPO) is a major milestone for a company. This is a very expensive and time-consuming process. It does not come without a lot of forethought and judicial weighing of the pros and cons. We will start this conversation by looking at some of the reasons why a company would decide to take the steps to become a publicly traded corporation. What pros and cons have to be weighed? Instructions - Use the numbers in the instructions...
The Woods Company and the Spieth have both announced an initial public offering (IPO) at $40...
The Woods Company and the Spieth have both announced an initial public offering (IPO) at $40 per share. One of these is undervalued by $9, and the other is overvalued by $4, but you have no way of knowing which company is undervalued and which company is overvalued. You plan to buy 1,000 shares in Woods and 1,000 shares in Spieth. If an issue is undervalued, and only half of your shares will be filled. If you could get 1,000...
Recently the social networking site Facebook had a successful Initial Public Offering (IPO) of its business....
Recently the social networking site Facebook had a successful Initial Public Offering (IPO) of its business. Write a report on the financial coverage of the financial securities. Is an IPO a primary market transaction or a secondary market transaction? Post IPO, what actions did the senior management take to maximize the shareholders’ interests? Give reasons. Using book Essentials of Corporate Finance
Recently the social networking site Facebook had a successful Initial Public Offering (IPO) of its business....
Recently the social networking site Facebook had a successful Initial Public Offering (IPO) of its business. Write a report on the financial coverage of the financial securities. Is an IPO a primary market transaction or a secondary market transaction? Post IPO, what actions did the senior management take to maximize the shareholders’ interests? Give reasons. Please Provide Sources
In a paragraph What is the purpose of an initial public offering (IPO)? How does an...
In a paragraph 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.
In a paragraph What is the purpose of an initial public offering (IPO)? How does an...
In a paragraph 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.
One of the theories regarding initial public offering (IPO) pricing is that the initial return y(the...
One of the theories regarding initial public offering (IPO) pricing is that the initial return y(the percentage change from offer to open price) on an IPO depends on the price revision x (the percentage change from pre-offer to offer price). Another factor that may influence the initial return is a high-tech dummy variable that equals 1 for high-tech firms and 0 otherwise. The following table shows a portion of the data on 264 IPO firms from January 2001 through September...
Describe the process of the primary market for stocks (Initial Public Offering (IPO)) and the secondary...
Describe the process of the primary market for stocks (Initial Public Offering (IPO)) and the secondary markets (stock exchanges). What types of companies are on an exchange (public corporations) and what are the positives and negatives of being a public corporation?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT