IPO
Underwriter conducts a survey of comparable public companies
Other issues that matter:
- Efficiency ratios (Sales/employee), Leverage ratios, profit margins, patent protection etc.
Price = price per share determined by what the market will bear
Generally want to issue at least 500,000 shares for 2 reasons:
Institutional investors buy in blocks of 10,000 to 50,000 (must disclose ownership after 5%)