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SouFun: Flotation IPO

Read the article SouFun sets eyes on $300 million flotation IPO and then have a go at the questions below. You can either read the article in the window below, or follow the previous link to open the article in a new window.

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Read more about Global IPOs in the following article:

To support your answers, you may wish to review the Wikipedia article on an IPO


Question 1

Define the term Initial Public Offering.

Question 2

Explain how the funds raised from an IPO will be used by the SouFun.

Question 3

Explain the role of merchant banks, such as JP Morgan Chase, in an IPO.

Question 4

Analyse the advantages and disadvantages of a flotation.

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Extension activity:

You may wish to investigate the following statement:

"The $30.5 billion that new issues raised globally in July was the most since November 2007".

See if you can find some other examples of recent IPOs and examine why there is a link between the popularity of IPOs and the business cycle.