Chapter Questions
Give reasons why a company would want to list on the stock exchange.
Why might shareholders prefer to sell their stakes in a company through an IP0 rather than a straight sale to an investor?
Why would a company with an $85 \%$ stake in a subsidiary launch a takeover bid for the remaining shares?
Why do companies that list their shares on the stock market have, more often than not, to change their corporate governance?
Why is it difficult for a sole shareholder to sell $100 \%$ of his shares when the company undertakes an IPO?
In response to a question about his expectations of Hermès's new financial strategy at the time of its IPO, Jean-Louis Dumas, Hermès's CEO, replied that he hoped that his grandchildren would be proud of him. Comment.
What are the risks run by a company that carries out an IP0 just because IPOs are fashionable?
What are the risks of an IP0?
What will a company with a large number of shareholders that does not want to get a listing on the stock exchange have to do sooner or later?