ipo

Question 1

What´s an IPO valuation?

Answer 1

An IPO valuation is the process by which an analyst (investment
bank) determines the fair value of a company’s shares.

Question 2

How is the market capitalization calculated?

Answer 2

multiplying the number of shares outstanding by the current price of a single share

Question 3

What are SPACS?

Answer 3

Special Purpose Acquisition Companies, aka blank check companies
= Formed to raise money through an initial public offering
(IPO) to buy another company (for example wework)

Question 4

What´s goodwill?

Answer 4

The intangible value of a company’s reputation, brand, and customer
relationships

Question 5

What´s a golden parachute?

Answer 5

A financial arrangement in which top executives receive lucrative
compensation or benefits if the company is acquired or if there is a change in control,
often serving as a protection mechanism for executives in the event of a takeover.

Question 6

What does the income statement tell us?

Answer 6

How much revenue the company has earned through their main business activity (the top line), whether they have generated a
Profit (the bottom line)

Question 7

What´s EBITDA?

Answer 7

earnings before interest, taxes, depreciation, and amortization

Question 8

What´s Return on Equity?

Answer 8

the profitability of a business in relation to the equity