Amazon.com issued an initial public offering in May 1997. Prior to its IPO, the following information on
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Amazon.com issued an initial public offering in May 1997. Prior to its IPO, the following information on shares outstanding was listed in the final prospectus:
In the IPO, the firm issued 3,000,000 new shares. The initial price was $18.00/share with investment bankers retaining $1.26 as fees. The final first-day closing price was $23.50.
Suppose you want to buy 200 shares of a stock that is currently trading at $100 per share. Your brokerage firm allows margin sales with a 52% opening margin and a maintenance margin of 27%. What does this mean? If you close your position with the shares at $140.00, what is your return?
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Related Book For
Financial Markets And Institutions
ISBN: 9781292215006
9th Global Edition
Authors: Stanley Eakins Frederic Mishkin
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