Lecture

Equity Carve-Outs: IPO Strategies

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In course

FIN-405: Investments

The course covers a wide range of topics in investment analysis ...

Description

This lecture explores equity carve-outs as IPO strategies, where a subsidiary company offers shares to the public. It discusses spinoffs, capital raising benefits, and stock pricing dynamics. Behavioral finance concepts, like overconfidence and heuristics, are also covered. Case studies on American Depositary Receipts and the 3Com-Palm spin-off provide practical insights. The lecture delves into the impact of market inclusion announcements on stock prices, emphasizing the importance of understanding IPO mechanisms and market behavior.

Instructor

Pierre Collin-Dufresne

Official source

Ontological neighbourhood

Business

Finance: Investment management

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A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately, such as shares of private companies which are sold to investors through equity crowdfunding platforms. Investment is usually made with an investment strategy in mind. The total market capitalization of all publicly traded securities worldwide rose from US$2.

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