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Showing posts from June, 2012

IPO and the Face !

I still remember the question that I was asked by one of my young friend cum relative. I was asked what type of software is IPO and I was dazed a bit and I kicked my brain to decode the word IPO thinking the same would be some new age technology that hit the market recently. Then abruptly the ‘financial inflows’ happened and my mind kicked start- Initial Public Offer. To a school going boy, it is hard to explain the ample financial aspects fully. Anyway I wore the lecture gown and started.  I was keen to start talking about companies’ valuation and I tried lightly taking simple or you could say silly examples.  He was educated well regarding the valuation when I explained that every company should undergo a valuation process when the company is going public. So Facebook also went through the same pipe line and they were tagged with a value of 100 billion dollars. My little friend caught the word ‘public’ which I was expecting. Public is nothing getting out of the shell and using publi…