Google's IPO

Paper Summary:

This paper discusses the popular search engine, Google, and examines its initial public offering process. The paper presents the unique method Google employed in offering the sale to the public: a modified Dutch auction. The paper mentions the overvaluation of the initial projected offering before the actual IPO date, as well as the extremely controversial "dual types" of stock, the super stock and the normal stock.

From the Paper:

"So why then, did Google set its opening price so high? The interesting thing is its very unorthodox offering via auction just may have played a significant role. After all, unlike in the more "traditional" IPO system, in which bankers set the prices low to insure sufficient profits, the auction system not only allowed the company to set a higher price while reaping the reward, but the actual individual stock buyers did as well. However, although many consider Google's management of the IPO offering via auction to have been a stroke of genius, many also consider its initial (July) price to have been foolishly high "so high, in fact, that some commentators labeled it nothing more than stark "hubris (Gillmore, 2004).""

More papers on Google's IPO:

• Essay # 89407 : "The Process Behind the IPO"
• Argumentative Essay # 92083 : "Are Auctions Worthwhile?"
• Term Paper # 94560 : "Initial Public Offerings"

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