Financial Markets and Institutions (2-downloads)

3. What was the market value of Amazon.com follow-

ing its first day as a publicly held company?

4. Refer back to the IPO of eBay presented in the prob-

lems for Chapter 13. What were the fees for eBay as

a percent of funds raised? Does a pattern emerge?

5. To verify this further, examine the IPO for Blue Nile, Inc.

It can be found on the SEC’s site at 

http://www.sec.gov/

Archives/edgar/data/1091171/00008916180400102

4/v97093b4e424b4.htm

. What was the offering price?

What percent was retained by the underwriter?

6. For Blue Nile, Inc., what are the expected proceeds

to the company? Is this certain? What assumptions

are you making? How would you verify this?

7. You want to buy 100 shares of a stock currently

trading at $50 per share. Your brokerage firm allows

margin sales with a 50% opening margin and a main-

tenance margin of 25%. What does this mean? If you

close your position with the shares at $53.50, what

is your return?

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Chapter 22 Investment Banks, Security Brokers and Dealers, and Venture Capital Firms