An initial public offering (IPO) or stock market launch, is the first sale of stock by a company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises. Many companies that undertake an IPO also request the assistance of an investment banking firm acting in the capacity of an underwriter to help them correctly assess the value of their shares, that is, the share price (IPO Initial Public Offerings, 2011).
In 1602, the Dutch East India Company was the first company in the world to issue stocks and bonds in an initial public offering.
When a company lists its securities on a public exchange, the money paid by investors for the newly issued shares goes directly to the company (in contrast to a later trade of shares on the exchange, where the money passes between investors). An IPO, therefore, allows a company to tap a wide pool of investors to provide itself with capital for future growth, repayment of debt or working capital. A company selling common shares is never required to repay the capital to investors.
Jack Ma (simplified Chinese: 马云; traditional Chinese: 馬雲; pinyin: Mǎ Yún; born September 10, 1964) is the founder, chairman and CEO of Alibaba Group, he is formally an English teacher at Hangzhou Teachers College.
Ma was born in the city of Hangzhou, Zhejiang Province, China. Ma attended Hangzhou Teachers College and graduated in 1988 with a bachelor's degree in English. Ma initially failed the entrance exam twice. While at the school, Ma was elected student chairman. He later became a lecturer in English and International Trade at the Hangzhou Dianzi University. Ma first started building websites for Chinese companies with the help of friends in the US. Ma has commented that "The day we got connected to the Web, I invited friends and TV people over to my house," and on a very slow dial-up connection, "we waited three and a half hours and got half a page.... We drank, watched TV and played cards, waiting. But I was so proud. I proved (to my house guests that) the Internet existed"[original research?]
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