U.S. companies are on track to raise the most money through initial public offerings since before the financial crisis. It appears that this trend is driven by the same thirst for risk among investors that has pushed the stock market to new highs.
1. Based on the information given in this article, what is the average amount already raised this year, based on number of firms and dollars raised?
2. How does your answer in #1 compare with the average for the same period in 2012?
3. What does the article indicate that successful deals have also been promising besides a good aftermarket?
4. What is your reaction to the risks being taken by investors at this time?
Demos, T. and M. Jarzemsky. (2013). IPOs Set to Raise Most Cash Since Crisis. The Wall Street Journal, May 12 (Retrievable online at http://online.wsj.com/article/SB10001424127887324031404578478940578501324.html?mod=dist_smartbrief)