Question: *PLEASE ANSWER ALL 4 QUESTIONS* The closing case explores the $231 billion initial public offering of Chinese e-commerce company Alibaba. Initially, Alibaba considered making an

*PLEASE ANSWER ALL 4 QUESTIONS*

The closing case explores the $231 billion initial public offering of Chinese e-commerce company Alibaba. Initially, Alibaba considered making an IPO in Hong Kong, but concerns over a rule that would cause founder Jack Ma and his colleagues to lose ownership control of the company caused them to turn to the New York Stock Exchange. The decision proved to be beneficial for Alibaba, and the IPO drew enormous interest from investors. When it launched on September 18, 2014, Alibabas IPO was the largest in history.

QUESTION 1: Why did Jack Ma decide it was time to take Alibaba public?

QUESTION 2: Why do you think the management of Alibaba decided against doing the IPO in China's main stock market, Shanghai? Why did they ultimately decide against Hong Kong?

QUESTION 3: What were the legal, financial, and strategic advantages to Alibaba of undertaking its IPO in New York?

QUESTION 4: Since the IPO was undertaken in New York, does this make Alibaba an American enterprise?

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