Kate is the sole founder of the exclusive retail store,Kate's Interiors.Kate identified additional locations that she believed offered profitable opportunities for expansion so decided to take her firm public in order to finance her expansion plans.Bob is an investor who purchased shares of Kate's Interiors stock at the offer price.After one month as a public firm,Kate realized that Bob had earned $1.1 million in profit on his investment and had already cashed out and moved on.Kate,on the other hand,had made no profit and still owns her shares.Explain how this could happen.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q62: The Bread Basket needs to raise $38
Q63: Provide two arguments in favor of IPO
Q64: Sherpa Movers has just gone public.Under a
Q65: ADP,Inc.needs to raise $43 million to finance
Q66: High Mountain Gear issued 240,000 shares of
Q67: What are some of the key factors
Q68: Abbott Co.and Costello Co.have both announced IPOs
Q69: Miller Tool is a successful manufacturer of
Q70: ADP,Inc.needs to raise $32 million to finance
Q72: Explain how a Dutch auction operates and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents