investment bank. (link to underpricing??) Underpricing refers to the first trading day closing price typically exceeds price at which the shares were offered to the public. Over 20 years‚ researchers investigated the underpricing puzzle associated with initial public offerings (IPOs). Ibboston1975‚ Ibbostson and Jaffe 1975 and Ritter 1984‚ among others‚ all document convincing evidence that initial public offerings are‚ on average underpriced. There are sufficient evidence of underpricing in UK (increase
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Corporate Finance: Case Netscape 1. Why has Netscape been so successful to date? What is its strategy? How risky is its current competitive situation? Netscape follows a “give away today make money tomorrow”-strategy. Netscape currently has 75% of web browser market‚ making it by far the most popular browsing software. Netscape is making money by selling server software to companies that require marketing access to potential consumers‚ by selling its software packages and through providing
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in an initial public offering then the stock is called a hot issue. Netscape Communications (NSCP) was the classic hot issue. It went public August 9‚ 1995 at an offer price of $28. On the same day it hit a high of $74¾ and closed at $58¼. Netscape hit an all time high of $174 in December 1995 and split 2:1 February 7‚ 1996. In the long term‚ however‚ Netscape wasn’t that hot an issue. A year after the initial public offer Netscape Communications was trading below $30 a share. (Adjusted for the split
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Startups‚ Entrepreneurs‚ Market strategy‚ Venture capital companies‚ Trends‚ Innovations Classification Codes 9520 Small businesses‚ 9190 US‚ 8130 Investment services‚ 5400 Research & development‚ 7000 Marketing Locations: US Author(s): Nicholas Valery Document types: Feature Publication title: The Economist. London: Feb 20‚ 1999. Vol. 350‚ Iss. 8107; pg. S22‚ 2 pgs Source type: Periodical ISSN: 00130613 ProQuest document ID: 39186421 Text Word Count
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This case is about Netscape Initial Public Offering (IPO) in 1995. Netscape had a successful starting in the market mainly because of their strategy of “Give away today and make money tomorrow”‚ which let them capture 75% of the web browser market‚ making it the most popular browsing software. The successful strategy consists in gaining its large market share by initially giving away its product for free. Netscape had to create a new industry standard to succeed in the long term‚ besides make revenues
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Executive Summary Netscape Communications Corporation is often credited with launching the dot-com era and technology boom of the late 1990 ’s and making the Internet and World Wide Web (WWW) common household terms and services. This era is coined the "Information Revolution"‚ since the Internet and WWW was integrated into our modern culture and society during that time. In 1995‚ Netscape‚ an early leader and innovator in the Internet and WWW software and web browser market‚ had been going
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Concerns About Globalization Much has been written about the possible negative consequences of globalization. Some of the key concerns are summarized below. Economic Leakage Economic leakage refers to the movement of profit margins from primary‚ to secondary‚ to tertiary markets. Primary markets are oriented mainly toward the production of raw commodities (e.g.‚ food commodities‚ such as corn‚ wheat‚ soybeans; mined goods‚ such as raw ore and minerals). Secondary markets focus mainly upon
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Case 1 – Netscape Initial Public Offering Course: Corporate Finance Date: 09-02-2015 Suzanne Groen Nikki Krayenoord Zhenni Hu Juliette van der Werf 10003288 10872043 10824286 6165796 1 Netscape Communication Corporation Netscape Communication Corporation is a software company founded in April 1994 by Marc Andreessen (co-founder of Mosaic) and Jim Clark (founder of Silicon Graphics). Their mission was to provide open software that connects information and people over the Internet and Intranet
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Child development stages AGE Social development Physical development Intelectual development Communication development Emotional Development 0-6 month Around about birth not much socializinghappens however as they grow alot more socializing happens such as . baby may when in vision follow your head or hand movements .baby may smile at mum .smiles at friendly voices .coos .crys .makes new sounds like gaga .laughs .Startles
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2. Netscape Valuation. In the process of raising capital by issuing stock to the public a crucial moment is to determine the company’s share price that best reflects the real value of the company. In our analysis in order to estimate the fair value of Netscape’s share price we have applied the Weighted Average Cost of Capital Method of Valuation. The WACC method implies that the firm’s weighted average cost of capital represents the average return that the company must pay to its investors‚ both
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