This flashcard is just one of a free flashcard set. See all flashcards!
27
What is a Dutch Auction IPO? What company, noted in the powerpoint slides, used a Dutch Auction IPO several years ago?
A Dutch Auction IPO is an IPO where the price is set by the lowest winning bidder.
Example: Three bidders each want one share of stock. Their bids are $25, $30, and $50 respectively for one share. However, the company is only allotting a total of two shares, so the lowest bidder at $25 doesn't get a share. The $30 bidder and $50 bidder each get a share, but they both only pay $30.
Google
Example: Three bidders each want one share of stock. Their bids are $25, $30, and $50 respectively for one share. However, the company is only allotting a total of two shares, so the lowest bidder at $25 doesn't get a share. The $30 bidder and $50 bidder each get a share, but they both only pay $30.
Flashcard info:
Author: savhighsmith
Main topic: Management
Topic: Entrepreneurship, Leadership
School / Univ.: UGA
City: Athens
Published: 30.03.2011