Today, I’ll continue on with my review of Graham’s The Intelligent Investor with a discussion of the sixth chapter of the book.
Chapter 6 of The Intelligent Investor discusses:
- Junk bonds
- Foreign bonds
- New stock issues – IPOs
Reuters reported that the Snapchat Inc. IPO is oversubscribed as potential buyers have been plentiful at lunches in New York and London during last week’s road show. Snapchat plans to sell 200 million non-voting shares of which 55 million are from company insiders for an estimated $3.2 billion which would bring the company’s market capitalization to over $22 billion. More →
An Initial Public Offering (IPO) is the first sale of stock by a private company to the public. An underwriting firm helps the previously private company determine an offering price and brings it to the market. IPOs can be very risky but also very rewarding; who wouldn’t hope of achieving returns similar to the ones achieved by investors who bought Microsoft Corporation (NASDAQ: MSFT) at its IPO? More →